Objectives, Goals, & Beliefs

Consistent with our Mission Statement, the goal of SDCERS’ investment program is to generate adequate long-term returns that, when combined with employer and employee contributions, will result in sufficient assets to pay the present and future benefit obligations of SDCERS. SDCERS invests all contributions utilizing a long-term investment strategy that consists of a diverse mix of equities, fixed income, real estate, and private equity.

Investment Beliefs/Philosophy

SDCERS’ Board has assumed the following investment beliefs that provide a foundation for implementation of the strategic investment policy. These investment beliefs are intended to help convey SDCERS’ perspective on several foundational investment areas.

Long-term time horizon;
Broadly diversify the portfolio with allocations across major asset classes to achieve a fair risk-adjusted rate of return;
Appropriate downside and inflation protection to minimize risk;
Adequate liquidity;
Prudently manage and defray costs; and
Meaningful allocation to alternatives

Investment Policy Statement

The Investment Policy Statement (IPS) encompasses the investment goals, asset allocation strategy, performance objectives and policies of the SDCERS Trust Fund. The IPS serves as a tool for the Board of Administration, the Investment Committee and staff to effectively supervise and monitor SDCERS’ investment program.