COAERS' investment beliefs are foundational to its long-term management of the Fund. They are the guiding principles by which the COAERS Board, the Staff and the investment consultant serve the long-term interests of the members, and consistently and sustainably achieve best-in-class results.

• Time Horizon - The Fund is a permanent entity with long-lived liabilities and, as such, it should strive to be a thoughtful, analytical, and patient investor that is focused on achieving successful outcomes.
• Governance - Clear governance and decision-making structures that promote decisiveness, simplicity, efficiency, and accountability are effective and add value to the Fund. To the extent possible, investment decision-making should be driven by data and analysis, including the findings of relevant research on financial markets and investment management.
• Risk Compensation - The Fund should seek to be well compensated for the investment risks it chooses to bear, risks that should be articulated at the time of investment and revisited regularly.
• Risk Management - Risk is multi-faceted, and the appropriate level of the COAERS’ portfolio risk is determined within an asset-liability context that focuses on maintaining the viability of the System.
• Diversification - Diversification across asset classes and risk factors is central to the System’s investment strategy, and investments that may improve the Fund’s risk/return profile will be considered. Investments should be considered based on their primary role in the total Fund context, including their impact on total Fund diversification.
• Strategic vs. Tactical - Given the long-term nature of the liabilities, the Fund should be a thoughtful and patient investor that focuses on long-term strategic decisions as opposed to the short-term trading of strategies.
• Costs - Costs can significantly reduce net returns and therefore must be carefully measured and managed when making decisions regarding investment strategy and implementation.
• Implementation - Implementation should occur passively and in public markets unless a high likelihood of success on a risk-adjusted, net-of-fees basis can be expected from other approaches.