How We Choose Managers

Overview

ACERA is a well-diversified public pension plan with a multi-billion dollar investment portfolio. Rather than making investments directly (which would require a massive in-house staff), like all pension funds, ACERA hires investment managers who are experts in particular types of asset classes to make the investments for us.

ACERA’s prospective investment managers are selected and thoroughly vetted by our investments consultant, Verus, according to ACERA’s investment strategy and investment policy. From there, the Investment Committee of ACERA’s Board of Retirement reviews and recommends prospective managers to the full Board, who makes the final selection. ACERA only invests directly with its investment managers and does not work with placement agents or brokers in accordance with our Placement Agent Disclosure Policy.

Currently, ACERA’s is fully invested in its target allocations to traditional asset classes with our current managers, so is not seeking managers for these asset classes. However, many of these managers are subject to ACERA’s periodic review process, which requires the managers to review not only their investment performance, but also their strategy, philosophy, and outlook on the markets, and present to the Investment Committee. Managers that do well are retained. Managers that don’t do so well are put on a watch list where they’re put on notice, and can ultimately be terminated by the Board, all in accordance with ACERA’s pre-established Investment Policy.

ACERA’s investment consultant, Verus, is reviewing private equity and alternatives managers, and prospective managers are encouraged to contact Verus. Additionally, ACERA does have a process to meet with prospective investment product/service vendors which we call Investment Products and Services Introductions.