San Francisco City and County Employees' Retirement System returned 13.46% on its investments for the fiscal year ended June 30, said David Kushner, deputy director for investments at the $14.7 billion fund. The system beat its weighted policy index by 2.06 percentage points and also surpassed its 8% assumed actuarial rate.
The system's biggest gains came from alternative investments, which returned 39.59% for the fiscal year, and international equity, 26.86%. Real estate returned 18.29%; U.S. equity, 8.79%; and fixed income, 2.11%.
The fund's asset allocation as of June 30 was 29.8% fixed income, 29.5% U.S. equity, 21.3% international equity, 9.8% private equity, 9.2% real estate, and the remainder in cash.
Separately, the system's board approved a staff recommendation to put up to $20 million in Ashmore Global Special Situations Fund III, Mr. Kushner said. This investment will be included in the system's international equity portfolio as an opportunistic strategy, a category added in August to provide flexibility for investing in strategies that do not fit within existing subasset classes. The Ashmore fund is a hybrid strategy, consisting of public equity, private equity and fixed income.
The board also approved a recommendation to invest up to $20 million in Cerberus Institutional Partners Series 4.