The Board of Trustees (Board) is authorized to invest and reinvest the Trust Fund (Fund), formulate investment policies, develop investment manager guidelines and objectives, and approve the retention of qualified advisors and investment managers.
The Statement of Investment Policy (PDF) outlines the ERS' portfolio's long-term objectives and investment diversification. A portfolio should be diversified at two levels: between asset classes and within asset classes. This diversification is called Asset Allocation.
Asset Allocation involves dividing the portfolio among different asset classes such as equities, fixed income, and real assets. The goal is to balance the risk and return of the portfolio by including asset classes that move up and down under different market conditions.
Diversification within each asset class is accomplished using multiple investment managers. Each manager has a set of guidelines which outline the manager's mission, objectives, benchmarks, authorized investments and restrictions. Annually, the Board reviews each manager's performance against these guidelines. Please refer to the Investment Manager Matrix for a list of investment managers.