The SERS Defined Benefit fund seeks to produce the highest return on investments that is consistent with acceptable investment risks while providing sufficient liquidity that will permit the fund to meet the system’s benefit obligations.
A wealth of information about the fund's holdings, asset allocations, returns, investment managers, fees, and other data is published every spring as we present supplemental budget information to the General Assembly and again by June 30 of each year in our comprehensive annual financial report.
The Right-to-Know Law expressly exempts the release of records that constitute or reveal third-party trade secrets and confidential proprietary information, if the information is privileged or disclosure would cause substantial harm to the competitive position of the person that provided the information to us. Additionally, the State Employees’ Retirement Code exempts records from access under the Right-to-Know Law if access would, in the case of an alternative investment, involve the release of sensitive investment information that we received only after agreeing to maintain its confidentiality (e.g., via contractual obligation) or if access could cause substantial competitive harm to the person from whom the information was received, or have a substantial detrimental impact on the value of an investment that we may acquire, hold, or dispose of. (For more details, see Our Duty to Safeguard Sensitive Investment Information.)
Such information has been redacted from the investment reports posted here.
This policy statement outlines the investment philosophy and practices and governs the management of the plan’s assets. This statement formalizes the SERS Board’s investment objectives and policies, and defines the duties and responsibilities of the various individuals and entities involved in the investment process. It also defines the investment portfolio structure and target asset allocations.
Archived Strategic Investment Plans
These were two-year, board-approved plans that described our investment program's strategy, structure, and implementation, and established a strategic asset allocation.
A comprehensive report prepared by SERS' independent actuary in response to Actuarial Standards of Practice (ASOP) No. 51 and Public Pension Management and Asset Investment Review Commission (PPMAIRC) recommendations. The report identifies and assesses major factors that contribute to the risk that the actual future value of benefits paid by SERS will differ from the estimated value provided by the annual actuarial valuation and the actuarially determined contributions. This report includes an analysis of “What if?” scenarios to determine the effect on future employer contributions and the availability of assets to pay benefits when due to members. These “What if?” scenarios are referred to as stress tests or scenario tests. The “What if?” scenarios are illustrative and do not represent current expectations of future experience or recommendations for changes in current policies. In each scenario, the effect on the actuarially determined contribution (ADC) and funded ratio are projected over a period of 20 years and compared to the baseline expectations. The report covers a wide range of investment-related, demographic-related and contribution-related risks that could affect the long-term health and stability of the SERS fund.
This policy defines consistent criteria for evaluating investment managers.
This report lists the fees, expenses, performance fees (for public market managers and real estate separately managed accounts) and carried interest (for private equity, private credit and private real estate managers) by investment manager.
Posted quarterly, three months after quarter closes, this one-page summary breaks down the total fund portfolio by asset class and sub-asset class, listing each segment’s market exposure, actual allocation as a percent of the total fund, and target policy allocation and range.
|Summary Holdings Report||2020 - Quarter 2|
|Summary Holdings Report||2020 - Quarter 1|
|Summary Holdings Report||2019 - Quarter 4|
|Summary Holdings Report||2019 - Quarter 3|
Posted on an annual basis in late June, the following reports list the investment holdings as of Dec. 31 of the prior year. The reports list: the securities held, their base cost, fair value and number of units for public holdings; and the fund and the capital committed, drawn, and distributed for the real estate and private equity holdings.
|Public Holdings as of December 31, 2019|
|Real Estate Holdings as of December 31, 2019|
|Private Holdings as of December 31, 2019|
Prepared by the fund’s general investment consultant each quarter, three months after quarter closes, this report updates the SERS Board on the fund's returns by asset class. Such information is preliminary, unaudited, and subject to change. We do, however, share the information in post-board-meeting news releases and provide the four most recent updates here. (For actual annual performance, please see our comprehensive annual financial report.)
|2020 - Quarter 2 | Executive Summary|
|2020 - Quarter 1 | Executive Summary|
|2019 - Quarter 4 | Executive Summary|
|2019 - Quarter 3 | Executive Summary|
Prepared by the fund’s private equity investment consultant twice a year (June and December), this report updates the SERS Board on the investment performance of the fund’s private equity portfolio.
|For the period ending 12/31/19|
|For the period ending 06/30/19|
Prepared by the fund’s real estate investment consultant twice a year (June and December), this report updates the SERS Board on the investment performance of the fund’s real estate portfolio.
|For the period ending 12/31/19|
|For the period ending 6/30/19|