FROM: Don Pierce, Chief Investment Officer
SUBJECT: 2025 Asset Allocation Review
RECOMMENDATION:
title
Recommend that the Board approve the 2025 Asset Allocation Review.
body
BACKGROUND:
Each year, NEPC updates their expected return estimates for various asset classes. Staff and NEPC then review their findings with the Investment Committee (IC) and Board. As reviewed with the IC and the Board on May 8 and June 5, respectively, NEPC and staff are recommending no changes to the current asset allocation. The discussion at both the IC and the Board included robust conversations about whether the various alternative scenarios were more worthy, and NEPC has recommended that SBCERA keep the strategic asset allocation as is, with its wide ranges, and revisit this more thoroughly as part of the Asset-Liability Study in 2026.
BUDGET IMPACT:
None.
STRATEGIC PLANNING GOAL/OBJECTIVE:
Prudent Fiscal Management
STAFF CONTACT:
Don Pierce
ATTACHMENTS:
Exhibit A: NEPC 2025 Asset Allocation Review