Investments

Investments

The Board’s primary focus is on long-term results. They review investment performance on a quarterly and annual basis. This review process provides insight as to whether the total fund is on track to meet investment objectives.

The policy benchmark (below) indicates what the returns would have been if MOSERS' portfolio had been invested passively according to our asset allocation. The total portfolio return allows us to determine if our returns are meeting assumptions. It also indicates if staff decisions have increased our investment earnings.


MOSERS' Investment Performance

Total Fund Performance as of June 30, 2020

  Total Portfolio Return

  Policy Benchmark


Asset and Risk Allocation

One of the most important decisions in the investment management process is determining the System's asset allocation. In 2018, the MOSERS Board, with advice from staff and the Board's investment consultant, adopted a new asset allocation as described in the Investment Policy Statement. The asset allocation reflects a diversified portfolio designed to achieve the long-term required return objectives of the System, given certain risk constraints. MOSERS will transition to the new asset allocation over a period of 36 months with expected completion by December 31, 2021.

While the Board maintains a set policy allocation mix, they have taken steps to provide flexibility. The Board has granted authority to the CIO to make strategic allocation decisions. This allows the CIO to capitalize on attractively valued opportunities within prudent risk constraints. This flexibility allows MOSERS to take advantage of changing market conditions.

Portfolio Transition Progress at June 30, 2020
0 100%

58%


Total Fund Old Asset Allocation at June 30, 2020

Policy Target vs. Actual Allocation

Old Policy
Old Actual

Total Fund New Asset Allocation at June 30, 2020

Policy Target vs. Actual Allocation

New Policy
New Actual