Investments

Objectives

The overall objective of the KCERA Plan is to provide retirement, disability, survivorship, cost-of-living and supplemental benefits to its vested members and their beneficiaries. To achieve this goal, KCERA must invest the funds received through employer contributions, employee contributions and investment earnings. Together, these funds permit KCERA to pay for the benefits earned by past, present and future members.

Historically, most of KCERA’s funding has come from investment returns, which is a key focus of the Board of Retirement. The Board has adopted an Investment Policy Statement to provide a framework for KCERA’s investment program. The program’s primary objective is to meet or exceed its actuarial assumed rate of 7.25% over the long term while permitting KCERA to satisfy its ongoing financial obligations.

Opportunities

KCERA manages a global investment portfolio, meaning that the Board of Retirement invests in asset classes across many countries. This broad diversification, along with ongoing due diligence, helps the Board minimize risk of loss while maximizing expected rates of return.

KCERA’s governing law requires that the Board make all investments, regardless of their geographic focus or origin, for the exclusive purpose of providing benefits to KCERA members. This has led KCERA to follow an approach to evaluating potential investments’ risk-reward profiles independently of geographic biases, unless geography could materially impact those factors.

Therefore, if an investment opportunity arises that would provide KCERA with a risk-reward profile that is comparable or superior to other investments available in the market, KCERA would consider that opportunity. The same criteria would be used to evaluate all such investments.

Investment Inquiries

If you would like to propose an investment opportunity, you may do so using information on the Contact Us page. However, please review KCERA’s Investment Policy Statement first, particularly the Asset Allocation section and related appendices.

A representative of KCERA’s investment division will respond to your inquiry within 10 days of receipt. KCERA reserves the right to decline to meet with any prospective proposer.