PSRS/PEERS* Asset Allocation
As of March 31, 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.
**In April 2020 the Board of Trustees adopted new asset allocation targets which decreased Public Risk Assets from 55% to 45% and increased Private Risk Assets from 25% to 35%. Within Public Assets, U.S. Equity decreased from 27% to 23%, Public Credit decreased from 7% to 0% and Non-U.S. Equity increased from 15% to 16%. Within Safe Assets, U.S. Treasuries increased from 16% to 20% while U.S. TIPS decreased from 4% to 0%. Within Private Assets, Private Equity increased from 12% to 16%, Real Estate increased from 9% to 11% and Private Credit increased from 4% to 8%. Until meaningful progress is made in reaching the long-term targets, the Policy Benchmark will remain as shown above.
** In January 2022, the Interim Target was increased to 3% for Private Credit while the Interim Target was decreased to 6% for Public Credit to reflect the meaningful progress made towards reaching the Long-term Target.