Investments

Overview

Investments

CCCERA is a defined benefit plan with approximately $7.6 billion in assets (as of September 30, 2016). A defined benefit plan guarantees a specific monthly benefit at retirement – contributions are collected regularly from members and participating employers and invested. These contributions and investment earnings allow CCCERA to pay member benefits.

Overview

Investment Policy

CCCERA’s assets are carefully managed through a diversified long-term investment program, overseen by the Board of Retirement in accordance the CCCERA’s Investment Policy. This policy establishes CCCERA’s investment objectives and defines the principal duties of the Board, CCCERA’s investment team, investment consultants, and asset managers. Investment decisions are made in the sole interest and for the exclusive purpose of providing benefits, minimizing employer contributions, and funding reasonable expenses for administering the system.

Overview

Asset Allocation

Asset allocation is an integral part of the Investment Policy and is designed to provide an optimum mix of asset classes with return expectations that reflect expected liabilities. Assets are divided into seven portions: global equity, global fixed income, real estate, real assets, alternative investments, opportunistic and incidental cash. 

Overview

Investment Objective

CCCERA’s main investment objective is for the total fund to exceed the consumer price index (CPI) plus 400 basis points over a market cycle. For the year ending September 30, 2016, the total fund gain was 9.6%, greater than the targeted return of 5.5% (CPI plus 400 basis points) but less than the median public fund return of 9.7%. Over the trailing five year period, the total fund gain was 10.9%, well above the targeted return of 5.3% (CPI plus 400 basis points) and higher than the median public fund return of 9.6%.

Overview

Investment Performance

CCCERA’s investment performance is summarized in Quarterly Review and Performance Measurement Reports below.

Commands