Board approves 50/50 equity‑fixed allocation for WA Cares trust after solvency analysis

The Washington State Investment Board voted to adopt a strategic asset allocation for the WA Cares long‑term services and supports trust that targets a 50% equity / 50% fixed‑income mix. Makita consultants presented scenario analyses showing the allocation preserves the consultants’ 75‑year solvency probability target while increasing expected corpus compared with a 100% fixed‑income approach.

"We think that a 50‑50 allocation puts us in position to either increase equity in a few years, decrease equity in a few years, or make other adjustments," said Jonathan Camp, an investment consultant presenting Makita's analysis. The presentation compared projected fund balances at milestone years (notably fiscal 2060), percentile downside scenarios and the sensitivity to higher inflation.

Board members discussed assumptions including the assumed equity-return premise (6.5% in the capital‑markets assumptions used) and the risks of inflation or worse-than-expected returns. Trustee questions focused on pacing to the target allocation and the contingency tools available if cash-flow experience diverges significantly from the actuarial baseline. The board approved the motion to adopt the allocation and corresponding policy revisions; staff said the fund will continue to be monitored and the allocation revisited at least every four years or when material information warrants earlier review.