The Sacramento County Employees’ Retirement System (SCERS) is a defined benefit pension system serving employees of Sacramento County and participating agencies in California. Operating under the County Employees Retirement Law of 1937, SCERS manages approximately $12 billion in total assets, making it one of the larger county-level retirement systems in the state.
Investment Strategy
SCERS employs a diversified, multi-asset investment strategy designed to meet its actuarial return target while managing portfolio risk across market environments. The asset allocation includes public equity, fixed income, real estate, private equity, infrastructure, and other alternatives. The Board of Retirement sets the investment policy and strategic allocation targets, informed by periodic asset-liability studies.
Public equity allocations span domestic and international markets, managed through a combination of active and passive strategies. Fixed income provides stability and income through government bonds, corporate credit, and other instruments. SCERS has developed a substantial alternatives program that includes real assets, private equity, and opportunistic strategies.
The system’s investment philosophy emphasizes diversification across risk factors, cost-effective implementation, and disciplined adherence to the strategic allocation. SCERS works with external investment consultants and maintains an internal investment team that manages portfolio operations.
Private Markets Approach
SCERS maintains an active private markets program spanning private equity, real estate, and infrastructure. The private equity portfolio includes buyout, growth equity, venture capital, and co-investment opportunities, with diversification across vintage years, fund sizes, and geographies. SCERS works with both established and selectively with emerging managers.
Real estate investments include core, value-add, and opportunistic strategies through commingled funds and separate accounts. Infrastructure investments provide stable, inflation-linked cash flows and diversification from traditional asset classes.
SCERS manages a structured commitment pacing plan for private capital investments to maintain target exposure levels. Fund managers seeking allocations should expect thorough due diligence covering investment strategy, performance attribution, team depth, operational capabilities, and fee structures. The Board of Retirement reviews and approves new commitments following recommendations from staff and consultants.
Frequently Asked Questions
How does SCERS allocate to private equity?
SCERS invests in private equity through limited partnership fund commitments across buyout, growth equity, and venture capital strategies. The system maintains a diversified private equity portfolio with a structured commitment pacing plan to ensure vintage year diversification.
What is the total size of the SCERS investment portfolio?
SCERS manages approximately $12 billion in total assets for employees of Sacramento County and participating agencies. The system operates under the County Employees Retirement Law of 1937.
What governance structure oversees SCERS investments?
The SCERS Board of Retirement, composed of elected and appointed trustees, oversees investment policy and asset allocation. The board is supported by an internal investment team and external consultants who manage portfolio construction and manager evaluation.
