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Pension Payment CalendarCheck mailed April 26, 2024Direct deposit April 30, 2024

Asset Allocation

The Board of Retirement invests KCERA’s multi-billion-dollar investment portfolio based on the recommendations of staff. External investment professionals are hired to implement the Board’s investment directives, subject to the investment policies and guidelines outlined in the Statement of Investment Policy. An essential feature of the policy is the diversification of assets in order to minimize risk of loss and to maximize rate of return.

Diversification ensures that KCERA does not put “all its eggs in one basket.” Doing so would be very risky in certain market conditions. Therefore, KCERA allocates pre-determined percentages of its total fund into distinct investment categories called asset classes. Each asset class has its unique advantages; together they provide an effective hedge during volatility in individual markets.

KCERA hires multiple investment management firms for each asset class. The firms are given a “mandate” to invest a certain percentage of KCERA’s assets in their respective specialty areas. To assist in its evaluation of these managers, the Board has hired two investment consultants, Verus and Albourne America LLC, to provide investment analysis, education, recommendations and reporting. Although implementation of KCERA’s investment policies is carried out by external firms, ultimate responsibility and decision-making for the investment program lies with the Board of Retirement.

Below is a chart of KCERA’s strategic target asset allocation. The actual asset allocation can be found in the most recent Annual Comprehensive Finacial Report located here. The KCERA portfolio was valued at $5.4 billion as of June 30, 2023.


Asset ClassTarget %Minimum %Maximum %
Global Public Equity33%23%45%
Core Fixed Income15%10%25%
Hedge Funds10%5%15%
Alpha Pool8%2%10%
Core Real Estate5%2%8%
Private Equity5%0%10%
Private Credit8%0%13%
Private Real Estate5%0%10%
Cash and Equivalents-8%-10%5%


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