Fresno County Employees' Retirement Association

The Fresno County Employees’ Retirement Association (FCERA) is a defined benefit pension system serving employees of Fresno County and participating special districts in California’s Central Valley. Operating under the County Employees Retirement Law of 1937, FCERA manages approximately $6 billion in total assets on behalf of active members, retirees, and beneficiaries.

Investment Strategy

FCERA maintains a diversified investment portfolio designed to meet its actuarial return assumptions while managing risk within established parameters. The asset allocation includes public equity, fixed income, real estate, and alternative investments. The Board of Retirement sets investment policy and strategic allocation targets, informed by periodic asset-liability studies and capital market assumptions.

Public equity allocations span domestic and international markets, with a blend of active and passive management approaches. Fixed income provides stability and income through government bonds, investment-grade corporate credit, and other instruments. FCERA has developed a moderate alternatives allocation to enhance portfolio diversification and improve risk-adjusted return potential.

The system’s investment philosophy emphasizes prudent risk management, diversification, and cost-effective implementation. External investment consultants support the board and staff in evaluating asset allocation, manager selection, and portfolio construction.

Private Markets Approach

FCERA invests in private equity through limited partnership fund commitments, with exposure to buyout, growth equity, and other institutional strategies. Given the fund’s moderate size, FCERA is thoughtful about commitment sizing and focuses on managers who can provide quality access at appropriate scale.

Real estate investments provide income, inflation protection, and diversification through commingled fund vehicles across core and value-add strategies. These allocations complement the public markets portfolio.

Fund managers approaching FCERA should understand the considerations of working with a mid-sized county retirement system. The due diligence process evaluates investment strategy, performance track record, team stability, fee structures, and operational capabilities. The Board of Retirement reviews and approves new commitments based on recommendations from staff and external consultants. FCERA values transparent reporting, alignment of interest, and managers who demonstrate disciplined execution.