The Delaware Public Employees’ Retirement System (DPERS) provides defined benefit retirement coverage for state employees, teachers, judges, and other public workers in Delaware. With approximately $11 billion in pension assets under management, the system is overseen by the Delaware Office of the State Treasurer, which manages the investment program on behalf of plan participants and beneficiaries.
Investment Strategy
Delaware PERS maintains a diversified portfolio designed to generate returns sufficient to meet its long-term actuarial obligations. The asset allocation spans public equity, fixed income, real estate, and alternative investments. The Cash Management Policy Board and the Treasurer’s office establish investment policy and strategic allocation targets, informed by periodic asset-liability studies.
Public equity allocations include domestic and international stocks, managed through a combination of active and passive strategies. Fixed income provides stability and income through government bonds, investment-grade credit, and other instruments. Delaware PERS has developed its alternatives allocation over time to improve portfolio diversification and risk-adjusted return potential.
The system’s investment approach emphasizes sound governance, cost-effective implementation, and prudent risk management. External investment consultants support the Treasurer’s office in evaluating asset allocation, manager selection, and portfolio construction decisions.
Private Markets Approach
Delaware PERS invests in private equity through commitments to limited partnership funds, with exposure to buyout, growth equity, and other strategies. The system builds diversified exposure across vintage years and fund types, working with established general partners who demonstrate strong track records.
Real estate investments provide income, inflation protection, and diversification through commingled fund vehicles across core and value-add strategies. The system evaluates real estate opportunities for their contribution to the overall portfolio’s risk-return profile.
Delaware PERS manages private markets commitment pacing to maintain target allocation levels. Fund managers seeking relationships with the system should expect a thorough evaluation process covering investment strategy, historical performance, team capabilities, and fee terms. The Treasurer’s office and its advisors conduct due diligence, with investment decisions guided by the established policy framework.
Frequently Asked Questions
How does Delaware PERS invest in private markets?
Delaware PERS invests in private markets through limited partnership fund commitments in private equity and real estate. The system works with external managers and investment consultants to build a diversified private markets portfolio across strategies and vintage years.
What is the total size of the Delaware PERS investment portfolio?
Delaware PERS manages approximately $11 billion in total pension assets. The system covers state employees, teachers, judges, and other public workers across the state of Delaware.
Who governs investment decisions for Delaware PERS?
The Cash Management Policy Board and the State Treasurer's office oversee investment policy for the pension funds. The investment team works with external consultants to evaluate manager relationships and make asset allocation recommendations.
