Tuesday, April 4, 2017
Investment Committee Meeting Update
At its regular meeting on March 28, 2017, the Investment Committee took several actions related to the retirement system’s $14.1 billion investment portfolio. As part of the Investment Committee’s ongoing consideration of OCERS’ asset allocation, the Committee approved specific recommended target ranges, as follows:
Global Public Equity now has a target range of 28 to 42 percent.
Private Equity now has a target range of 4 to 12 percent.
Core Fixed Income has a target range of 12 to 22 percent.
Credit has a target range of 8 to 18 percent.
Real Assets has a target range of 17 to 27 percent.
Risk Mitigation has a target range of 0 to 10 percent.
Finally, Cash has a target range of 0 to 5 percent.
The 20-year expected return on the adopted asset allocation and target ranges approved by the Investment Committee are 7.0 to 8.3 percent according to OCERS' consultant, Meketa Investment Group.
As part of the moves made by the Investment Committee on March 28, OCERS will redeploy assets that currently reside in the following strategies because those mandates are not ideally suited for the newly-adopted asset allocation.
Global Equity mandates Franklin Templeton Investments ($162.5 million), Grantham, Mayo, Van Otterloo ($137.9 million) and JP Morgan Investment Advisors ($150.6 million) will be transferred to 50 percent US Equity Index/50 percent International Equity Index.
The PIMCO All Asset All Authority Real Return mandate ($232.3 million) will be liquidated. OCERS staff and investment consultants will redeploy the proceeds.
GTAA mandates Standard Life Global Absolute Return ($299.3 million) and GMO Benchmark Free ($252.4 million) will be liquidated. OCERS staff and investment consultants will redeploy the proceeds.
OCERS' Board of Retirement will hold its next regular meeting at 9 a.m. on Monday, April 17, 2017.