Pension Funds Management and Investments

The State Treasurer's Office administers the investment policies and strategies adopted by the
Vermont Pension Investment Committee for the benefit of the Vermont State Retirement System, Vermont State Teachers' Retirement System and Vermont Municipal Employees Retirement System.

Asset Allocation

Asset allocation is essential to the investment performance of the plan. In order to insulate the portfolios from short-term market fluctuations, the three pension systems diversify assets across a broad group of asset classes, which enables each portfolio to maintain stability through market cycles of the different asset classes. Each system's assets are invested in stocks, bonds, global asset allocation strategies and real estate, with an additional small allocation to alternative partnerships. These investment categories have imperfect correlations, so if one category is faltering, another may be doing exceedingly well. This strategy minimizes the effects of short term volatility that occurs within each asset class and is totally different from market timing, in which an investor attempts to predict the ups and downs of various markets. In such a strategy, substantial losses can occur if the timing decision is incorrect.

Pension Funds Asset Allocation

Current targeted allocation (Approved as of February 23, 2016) :

 

Asset Class
Target
Cash
  0.0%
 
 
Large Cap Equity 
13.0%
Small/Mid Cap Equity
  5.0%
International Equity
11.0%
Emerging Market Equity
  6.0%
Total Equity
35.0%
 
 
Diversified Bonds 
15.0%
Long Treasuries 1
  3.0%
High-Yield Bonds
  5.0%
Emerging Market Debt
  5.0%
TIPS 2
  4.0%
Total Fixed Income
32.0%
 
 
Real Estate
  8.0%
Commodities   3.0%
Private Equity   5.0%
Total Alternatives
16.0%
 
 
Risk Parity
  8.0%
Absolute Return  
  9.0%
Total Multi-Strategy
17.0%

 

1 Includes "portable alpha" strategies that may invest in a variety of underlying asset classes.

2 Treasury Inflation Protected Securities

Pension Funds Holdings

Links to holdings of the VPIC portfolio as of the end of each quarter since June, 2009 are listed below. For holdings in periods prior to that date, please see the detailed investment performance files for each system.

 

December, 2016
September, 2016
June, 2016
March, 2016
December, 2015
September, 2015
June, 2015
March, 2015
December, 2014
September, 2014
June, 2014
March, 2014
December, 2013
September, 2013
June, 2013
March, 2013
December, 2012
September, 2012
June, 2012
March, 2012
December, 2011
September, 2011
June, 2011
March, 2011
December, 2010
September, 2010
June, 2010
March, 2010
December, 2009
September, 2009
June, 2009