San Joaquin County Employees' Retirement Association, Stockton, Calif., increased targets to global equity, its aggressive growth portfolio and core private real estate following the completion of an asset-liability study.
The $4 billion pension fund's board approved the new targets at its June 3 meeting, recently released meeting minutes show.
Investment consultant Meketa Investment Group conducted the study and recommended slight changes to the target allocation in order to maintain a 7% long-term investment return target, according to a presentation included with June 3 meeting materials.
The board approved increasing the targets to global public equities to 34% from 32%, aggressive growth to 16% from 10% and core private real estate to 9% from 6% and decreasing the targets to credit to 15% from 17%, crisis risk offset to 13% from 15%, and principal protection strategies (fixed income) to 7% from 10%.
The presentation does not say whether there will be any manager searches or terminations as a result of the changes.
As of March 31, the pension fund's actual allocation was 36.3% traditional growth, 30% stabilized growth, 12.3% crisis risk offset, 10.3% principal protection, 8.1% aggressive growth and the rest in cash.
SJCERA's aggressive growth portfolio consists of private equity, venture capital and non-core real estate. Traditional growth consists of public equities and stabilized growth consists of core real estate, credit and risk parity. Principal protection consists of a diversified mix of fixed-income strategies.
SJCERA CEO Johanna Shick could not be immediately reached for further information.
