Asset Allocation
Our Current Mix of Assets as of June 30, 2025
| Assets | Market Value | Actual | Target | Difference1 |
|---|---|---|---|---|
| Public Equity2 |
$6,943,262,977 |
52.7% | 48.0% | 4.7% |
| Safe Haven Fixed Income3 |
$1,514,795,177 |
11.5% | 10.0% | 1.5% |
| Risk Seeking Fixed Income | $514,683,30 | 3.9% | 4.0% | -0.1% |
| Real Estate | $824,417,621 | 6.3% | 8.2% | -1.9% |
| Private Equity | $944,84,764 | 7.2% | 11.0% | -3.8% |
| Absolute Return |
$1,034,959,996 |
7.9% | 6.0% | 1.9% |
| Real Assets |
$801,982,375 |
6.1% | 6.0% | 0.1% |
| Private Credit |
$569,302,332 |
4.3% | 6.8% | -2.5% |
| Cash + Overlay4 |
$14,700,596 |
0.1% | 0.0% | 0.1% |
| Total Investment Assets5 | $13,162,909,220 | 100.0% | 100.0% |
1 The Difference between Total Exposure and Policy.
2 Public Equity Total Exposure is the sum of Physical Exposure, $6.0B, and Overlay Exposure,
$912.2M, for a Total Equity Exposure of $6.9B.
3 Safe Haven Fixed Income Total Exposure is the sum of Physical Exposure, $1.3B, and Overlay
Exposure, $241.5M, for a Total Safe Haven Fixed Income Exposure of $1.5B.
4 Cash + Overlay Exposure is the sum of Physical Cash Exposure, $1.0B, Parametric Account
Value, $136.7M, and Overlay Exposure, -$1.2B, for a Total Cash + Overlay Exposure of $14.7M.
5 May not sum to 100% due to rounding.
A $400 million pre-funding contribution from the County of Alameda at June month-end temporarily boosted cash, which was invested in early July to meet asset-allocation targets.
Asset Classes
What We Invest In
| Asset Class | Target % of Fund | What It Is |
|---|---|---|
| Public Equity | 48% |
Stock in public companies. When you buy shares in a company in the form of stocks, you are part owner of the company and can be paid part of the company’s profits. If you sell your shares for more than you bought them for, you keep the gain. |
| Safe Haven Fixed Income | 10% |
High-quality, low-risk fixed income securities such as US Treasuries and Treasury Inflation-Protected Securities (TIPS). Cash or short duration assets may be considered as part of a safe-haven allocation or separately based on cash needs. |
| Risk Seeking Fixed Income |
4% |
Liquid credit-oriented fixed income strategies, such as high yield or multi sector credit, that aim to deliver higher returns by taking on greater credit risk, liquidity risk, and sometimes structural complexity compared to traditional “safe haven” bonds. These allocations are designed to seek return, not just provide stability or liquidity. |
| Real Estate (Real, Tangible Properties) |
8.2% | Property (e.g., land or buildings) held as investments to generate income and/or appreciate in value. The major real estate property types include multifamily, industrial, office, retail, and hotel. |
| Private Equity (Non-Public Companies) |
11.0% | Equity (i.e., ownership) investments in private companies or private assets. The major strategic categories withing private equity include buyouts, growth equity, and venture capital. |
| Absolute Return (Stable, positive returns) |
6.0% |
Investment strategies which produce returns that are uncorrelated to the other asset classes and enhance the Total Fund’s diversification. They include a variety of hedge funds, fund of hedge funds, and private investments. |
| Real Assets (Inflation Hedge) |
6.0% |
Investment strategies focused on infrastructure and natural resources investments that produce an inflation-sensitive return meant to mitigate the impact of domestic inflation on the Total Fund. The investments are both public and private investments. Infrastructure investments include strategies that target infrastructure assets in the transportation, utilities, renewable energy, traditional power and energy, and digital and social infrastructure sectors. Natural resources investments include strategies focused on metals, minerals, energy, agriculture, and timberland. |
|
Private Credit (Loans/Debt) |
6.8% |
Private Credit is illiquid debt that is issued by private investment managers/funds outside of the banking system and not publicly traded. Due to the illiquidity of the debt, investors in private credit receive an illiquidity premium that enhances returns. This illiquidity premium, along with the largely sub-investment-grade credit quality of most private loans, make the asset class return seeking in nature versus defensive. The issued debt can be loans to public or private corporations as well as loans collateralized by hard assets. Investment strategies fall under three major categories – direct lending, opportunistic, and distressed. |
| Cash + Overlay | 0.0% |
Operational cash balances, which may be used for benefit payments or other expenses of the plan. These cash balances are securitized via ACERA’s overlay program to avoid a performance drag on the portfolio while retaining the liquidity of the cash holdings. |
