The Missouri State Employees’ Retirement System (MOSERS) provides retirement, disability, and survivor benefits to employees of the state of Missouri. With approximately $10 billion in assets under management as of mid-2024, MOSERS serves the state’s workforce with a focus on prudent investment management and long-term growth.
Investment Strategy
MOSERS maintains a diversified investment portfolio designed to achieve returns sufficient to fund its long-term pension obligations. The strategic asset allocation includes public equities, fixed income, real estate, private equity, and other alternatives. The board of trustees reviews the allocation periodically with input from investment consultants and staff.
Public equities represent the largest portfolio allocation, with exposure to domestic and international markets. Fixed income provides portfolio stability and cash flow for benefit payments. Despite its smaller size relative to many state pension systems, MOSERS has pursued a meaningful alternatives allocation to diversify return sources and capture private market premiums.
Private Markets Approach
MOSERS’s private markets program, while smaller in absolute terms than larger state peers, represents a meaningful portion of the portfolio. The private equity allocation targets approximately 10% of total assets, with commitments focused on buyout and growth equity strategies. The system values managers with disciplined approaches and demonstrated ability to generate consistent returns.
Real estate investments provide additional diversification, with allocations to core and value-add strategies. The system invests through commingled funds, leveraging managers with strong property-level expertise.
As a mid-sized pension fund, MOSERS brings specific considerations to the manager selection process. The system seeks managers who provide institutional-quality service to all limited partners regardless of commitment size. MOSERS values direct access to senior investment professionals and regular, transparent communication about portfolio performance and strategy.
The investment team conducts due diligence in collaboration with external consultants, evaluating managers on performance, process, team stability, and operational capabilities. The board of trustees provides governance oversight and approves significant commitment decisions.
Frequently Asked Questions
How large is MOSERS's private equity program?
MOSERS allocates approximately 10% of its portfolio to private equity, representing roughly $1 billion in committed capital. The system invests selectively across buyout and growth strategies, focusing on high-quality managers with proven track records.
What commitment sizes does MOSERS typically make?
Given its $10 billion asset base, MOSERS makes commitments typically ranging from $15 million to $50 million per fund. The system focuses on managers who can accommodate institutional investors of this size and provide appropriate attention to smaller-commitment LPs.
How does MOSERS select investment managers?
MOSERS's board of trustees sets investment policy, and the internal investment staff evaluates opportunities with support from external consultants. The system follows a structured due diligence process and values managers with strong alignment, transparent fees, and consistent performance.
