Managing for the Long Haul
DERP’s investment strategy is disciplined, balanced, and focused on long-term results. Our investment strategy takes into account that there will be investment gains in some years and losses in others, and relies on professional investment management, diversification of investments, and a long-term investment strategy to achieve its goal. To withstand significant market swings, we follow a strategic asset allocation policy so we are invested across multiple asset classes (i.e. bonds, U.S. stocks, foreign stocks, real assets, and private equity).
The goal of the asset allocation is to provide the highest level of return at an acceptable level of risk. We partner with some of the best investment professionals in the country using best practice investment strategies to maximize returns and manage investment risk. We collaborate with partners who challenge us to be innovative and take different routes. Meketa Investment Group, our investment consultant, works with us to adopt forward-looking and progressive investment strategies, enabling continued delivery of retirement benefits.
DERP is required to make investment management decisions solely for the benefit of the trust funds it manages. As fiduciaries of the pension funds, DERP staff and the retirement board are required to use the diligence, skill, and care that a prudent investor would use in managing a large public pension fund. Investment guidelines, set by the retirement board, are the parameters that must be followed to make investment decisions.