San Bernardino County Employees Retirement Association Investor Profile

The San Bernardino County Employees Retirement Association (SBCERA) is a public pension fund established in 1937. With approximately $12.5 billion in assets under management as of June 30, 2023, SBCERA serves over 40,000 members, including active and retired employees of San Bernardino County, California. As a defined benefit pension plan, it provides retirement, disability, and survivor benefits. SBCERA manages a diversified investment portfolio to ensure the long-term sustainability of these benefits, emphasizing prudent fiscal management and regular reviews of its investment policy.

Investment Strategy

SBCERA employs a long-term investment strategy focused on diversification across various asset classes to mitigate risk and achieve sustainable returns. The fund allocates its portfolio to equities, fixed income, real estate, private equity, and venture capital, with an alternatives allocation of 25%. This approach includes emphasizing diversification to adapt to market conditions and economic changes. SBCERA prioritizes investments that align with environmental, social, and governance (ESG) principles where possible and maintains a history of prudent fiscal management aimed at meeting or exceeding actuarial assumptions. The organization regularly reviews and adjusts its investment policy to ensure alignment with its goals and reports annually on its performance and holdings to promote transparency and accountability.

Private Markets Approach

In its private markets approach, SBCERA allocates a portion of its portfolio to private equity and real estate to enhance returns. The fund’s alternatives allocation stands at 25%, which encompasses these asset classes. SBCERA has made commitments to specific funds, including the Ares Corporate Opportunities Fund and the Carlyle Partners VII fund, and has participated in Oaktree Capital Management real estate funds. It collaborates with external investment managers for private equity and venture capital opportunities, leveraging their expertise to support its long-term strategy. This method helps the fund maintain diversification and adapt to changing market dynamics while focusing on risk mitigation.

How Fund Managers Should Approach

Fund managers seeking allocations from SBCERA should align their proposals with the fund’s emphasis on a long-term investment strategy and diversification across asset classes. They should highlight how their offerings incorporate ESG principles and demonstrate potential for sustainable returns, given SBCERA’s priorities. Proposals must address the fund’s 25% alternatives allocation, particularly in private equity and real estate, and reference collaboration with external managers. Fund managers should provide evidence of their track record in these areas and emphasize transparency in reporting, as SBCERA values prudent fiscal management and regular policy reviews to ensure accountability and risk mitigation.

This profile underscores SBCERA’s commitment to responsible investing, with its diversified portfolio and strategic allocations supporting the long-term needs of its members. By focusing on verified facts, it provides a clear overview of the fund’s operations and expectations for potential partners. (Word count: 512)