US - The Sacramento County Employees' Retirement System (SCERS) produced an investment return of -0.8% in the last quarter of 2007 but retained 8.4% over the calendar year.
Tom Lightvoet, adviser to the fund from Mercer, told the retirement board on 21 February 2008, the primary factors affecting the market and investment returns were growing concerns about an economic slowdown due to the decline in residential construction and problems in the financial sector connected with sub prime mortgages.
Lightvoet pointed out, however, the fund's three year returns were better than the average pension plan.
Over the three months to the end of December 2007, the fund had shifted 1.4% of its holdings out of domestic equities and increased its allocation to hedge funds, private equity and real estate.
The board heard Bear Stearns and Pzenqa Investment Management had been placed on the watch list whilst Lightvoet, along with the CIO and CEO of the fund, would be investigating a possible allocation to commodities and would report findings at the next meeting.
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