Florida Retirement System Pension Plan Asset Classes
A fund's exposure to various major asset types or asset classes is known as its asset
allocation. The Florida Retirement System Trust Fund invests in the following asset classes:
| Global Equity | Asset class consisting principally of stocks of companies located in the United States and internationally |
| Fixed Income | Asset class consisting principally of investment grade bonds |
| Real Estate | Asset class consisting principally of direct-owned real properties, real estate-based joint ventures, open-end and closed-end funds, and publicly traded real estate securities (e.g., REITs) |
| Private Equity | Asset class consisting principally of investments in buyouts, co-investments, secondary investments, distressed/turnaround investments, and venture capital. |
| Strategic Investments | Asset class in the FRS Pension plan consisting of debt, equity, real assets, diversifying strategies, flexible mandates, and special situations. |
| Cash Equivalents | Asset class consisting principally of securities that are short-term, have high credit quality, and are highly liquid in nature. |
| Active Credit | TBD |
Asset class performance is measured in accordance with a broad market index appropriate to the asset class. The indices identified in the table to the right are used as the primary benchmarks for the Fund's asset classes.
The SBA has a history of making periodic adjustments to its asset allocation to ensure our strategy is appropriate for the long-term health of the pension system.
This has resulted in approxtimately $2 out of every $3 paid to retirees coming from investment earnings, not Florida taxpayers.
Asset Class
Index
Global Equity
A custom version of the MSCI All Country World lnvestable Market Index (ACWI IMI), in dollar terms, net of withholding taxes on non-resident institutional investors, adjusted to reflect securities and other investments prohibited by Florida law or that would be prohibited by Florida law if acquired as of the date of the measurement of such Index notwithstanding that the securities or investments were actually acquired before such date
Fixed Incomey
The Bloomberg U.S. Aggregate Bond Index
Real Estate
The core portion of the asset class is benchmarked to anaverage of the National Council of Real Estate Investment Fiduciaries (NCREIF) Fund Index – Open-ended Diversified Core Equity, NET of fees, weighted at 83.3%, and the non-core portion of the asset class is benchmarked to an average of the National Council of Real Estate Investment Fiduciaries (NCREIF) Fund Index – Open-ended Diversified Core Equity, NET of fees, weighted at 16.7%, plus a fixed return premium of 150 basis points per annum
Private Equity
Global Equity Target Index, plus a fixed premium return of 250 basis points per annum