SDCERS' Commentary on Current Market Conditions

Date: Aug 11, 2011

 

In light of the market decline and volatility of the past few weeks, SDCERS’ Chief Investment Officer Liza Crisafi provided insight to questions regarding the effect on SDCERS’ investment strategy:

"The market decline and volatility over the last two weeks  has had a short-term adverse impact on SDCERS' total portfolio value; however, SDCERS has not deviated or made any tactical change to its long-term investment strategy.

S&P's downgrade of the U.S. sovereign debt rating to AA+ from AAA does not impact SDCERS' fixed income guidelines and/or force the sale of any securities. SDCERS' fixed income managers (along with other SDCERS money managers) were not surprised by the downgrade and are not making any dramatic portfolio shifts. SDCERS' investment staff is in constant communication with its institutional money managers who continue to manage their portfolios in accordance with their disciplined strategies and SDCERS' guidelines.

Markets will undoubtedly remain volatile as U.S. fiscal and debt issues, European debt crises, economic growth trends and government reactions play out. Through this volatility, SDCERS' investment strategy will remain focused on its long-term objectives."




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