Fresno County Adopts New A/A
Searches to Come
August 11, 2008
The Fresno County Employees’ Retirement Association (FCERA) has adopted a new asset mix which includes allocations to opportunistic fixed-income, hedge funds and real assets, said Roberto Pena, administrator at the $2.7 billion fund.
The changes are due to the results of a recently completed asset/liability study conducted by Wurts & Associates.
“The board is looking for a little more return and little more risk of standard deviation,” Pena explained. “We want to make sure that we have a better chance of reaching the assumed rate of return, which is 8%”
Pena said that FCERA would begin talks regarding how to implement the new mix at next month’s board meeting.
Meanwhile, the results of the asset/liability study lists the California plan’s current allocations as 30% domestic core fixed-income, 28% large-cap domestic equity, 15% large-cap international equity, 10% smid-cap domestic equity, 6% private equity, 4% each to real estate and emerging markets equity and 3% to international fixed-income.
The new mix will include allocations of 6% opportunistic bonds, 9% hedge funds and 11% real assets, which will include investments in real estate, infrastructure, TIPS and commodities.
Pena anticipates that manager searches will be launched before the end of the year. He could not speculate on the source of funding for the anticipated investments or whether or not the plan’s existing managers will be affected.
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