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MCERA portfolio hits record $833 million; trustees approve small rebalancing into fixed income
Summary
Mendocino County’s pension fund reported a record market value of approximately $833 million and small tactical rebalancing to reduce exposure to recent international equity gains, moving funds into fixed‑income strategies.
The Mendocino County Employees Retirement Association reported on Oct. 15 that plan assets reached a record approximately $833 million. Staff and Callan, the board’s investment consultant, said trustees had approved a modest rebalancing that trimmed recent gains in international equities and added to the fixed‑income sleeve of the portfolio.
Robert Revelis, the retirement system’s financial/investment officer, told trustees: “We are at an all time high. And we did do some minor rebalancing…833,000,000 when you round.” He said the changes were modest and consistent with the plan’s rebalancing policy.
Manager‑level adjustments recorded at the meeting included moving a combined $6 million from international equity managers into fixed‑income strategies: $3 million to each of two fixed‑income managers, staff reported. The transfers were described as tactical rebalancing to keep the plan near its target asset allocation after international equity returns outpaced other components earlier in the fiscal year.
Trustees were given the monthly investment report that reflected the rebalancing and the new portfolio market value; Callan will present a fuller quarterly investment review at the November committee meetings that will include additional performance detail. Staff emphasized that the reallocation was not an emergency shift but a routine rebalancing after strong performance in specific sub‑asset classes.
Ending: MCERA staff will report back with full quarterly performance detail from Callan at upcoming committee meetings. The modest repositioning reduces international equity exposure and modestly increases fixed‑income holdings as a near‑term portfolio risk‑management step.
