PSRS/PEERS* Asset Allocation
As of September 30, 2022
The time horizon of the Systems' investment portfolio reflects the long-term nature of the PSRS/PEERS pension obligations. Accordingly, diversification among investments displaying unique risk and return characteristics provides the framework for selecting an asset allocation that is expected, in the aggregate, to give the funds the highest long-term return within a prudent risk level. The Board approved risk-based asset allocation consists of Public Risk Assets (U.S. Public Equity, Credit Bonds, Hedged Assets and Non-US Public Equity), Safe Assets (U.S. Treasuries, U.S. TIPS and Cash Equivalents) and Private Risk Assets (Private Equity, Private Real Estate and Private Credit). The Systems’ asset allocation is reviewed in conjunction with plan liabilities at least every five years.
* Effective July 1, 2013, all assets are held in the Missouri Education Pension Trust (MEPT) for the exclusive benefit of the Public School and Education Employee Retirement Systems of Missouri.
** During the April 2022 meeting, the Board adopted new asset allocation targets which are as follows: Safe Assets decreased from 20% to 15% and Private Risk Assets increased from 35% to 40%. Within Safe Assets, U.S. Treasuries decreased from 20% to 15% and within Private Assets, Private Equity increased from 16% to 21%.
** Effective July 1, 2022 the Interim Target was increased to 11% for Real Estate and 4% for Private Credit while the Interim Target for Public Credit was decreased to 3% to reflect the meaningful progress made in reaching the Long-term Target.
*** The U.S. Public Equity program includes 0.7% Total Plan leverage to efficiently implement portfolio rebalancing.