Asset Allocation and Rebalancing
WCRA's primary asset allocation is the desired long-term allocation of assets among various broad asset classes. It represents that combination of asset classes believed to be most consistent with WCRA's investment objectives and risk tolerance. A primary asset allocation is not meant to be adjusted in response to transitory market movements. It is changed only when WCRA's investment objectives or risk tolerance is altered, or when significant changes in the capital markets occur that affect the long-term risk-return relationships between the difference asset classes. Under normal conditions, it is expected that the WCRA portfolio will be managed in such a way that the actual asset class allocations will remain within the normal ranges stated below. Investment strategies or market conditions that result in an allocation position for any asset class outside of its normal range as of any quarter end shall be reported to the WCRA Board of Directors.
The WCRA Board of Directors has approved the following asset allocation targets and ranges.
WCRA Primary Asset Allocation
|Primary Asset Class||Target||Normal Range*|
|Domestic Equity||40%||36.0% to 44.0%|
|International Equity||20%||18.0% to 22.0%|
|Fixed Income||30%||27% to 33%|
|Alternative Investments||10%||10% to 12%|
*No action required