The San Bernardino County Employees’ Retirement Association (SBCERA) is a defined benefit pension system serving employees of San Bernardino County and participating special districts in California. Operating under the County Employees Retirement Law of 1937, SBCERA manages approximately $14 billion in total assets on behalf of active members, retirees, and beneficiaries.
Investment Strategy
SBCERA maintains a diversified investment portfolio designed to achieve its actuarial return assumption while managing risk within the parameters established by the Board of Retirement. The asset allocation includes public equity, fixed income, real estate, private equity, and other alternatives. The board reviews and approves the investment policy statement and strategic allocation targets, guided by periodic asset-liability studies.
Public equity holdings span domestic and international markets, managed through a blend of active and passive strategies. Fixed income provides stability and income through government bonds, investment-grade corporate credit, and other instruments. SBCERA has developed a meaningful alternatives program to enhance portfolio diversification and return potential.
The system works with external investment consultants who advise on asset allocation, manager selection, and portfolio construction. SBCERA’s investment philosophy emphasizes disciplined adherence to the strategic allocation, prudent manager diversification, and cost-aware implementation.
Private Markets Approach
SBCERA’s private markets program includes commitments to private equity, real estate, and other alternative strategies. The private equity portfolio spans buyout, growth equity, venture capital, and co-investment opportunities, with diversification across vintage years, fund sizes, and geographies.
Real estate investments include core, value-add, and opportunistic strategies through commingled funds and separate accounts. These allocations provide income generation, inflation protection, and diversification from public markets.
SBCERA manages its private capital commitment pacing through a formal plan that targets consistent deployment across vintage years. Fund managers seeking allocations should expect a comprehensive due diligence process that evaluates investment strategy, team capabilities, track record, operational infrastructure, and fee structures. The Board of Retirement reviews and approves new commitments following recommendations from staff and consultants.
Frequently Asked Questions
How does SBCERA invest in private equity?
SBCERA 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 commitments managed through a formal pacing plan approved by the Board of Retirement.
What is the total asset size of SBCERA?
SBCERA manages approximately $14 billion in total assets for county employees and participating district employees in San Bernardino County, California. The system operates under the County Employees Retirement Law of 1937.
What governance structure oversees SBCERA investments?
The SBCERA Board of Retirement, composed of elected and appointed trustees, oversees investment policy and asset allocation. The board works with an internal investment team and external consultants to manage the portfolio and evaluate manager relationships.
