Merced County (Calif.) Employees' Retirement Association reported a preliminary net return of 6.8% for the fiscal year ended June 30.
The $916 million pension fund's return was above its policy benchmark return of 5.3%, according to an investment report posted on the MCERA's website.
For the three, five and 10 years ended June 30, the pension fund returned an annualized net 7.1%, 6.7% and 8.6%, respectively, compared with the respective benchmarks of 6.5%, 6.7% and 9%.
For the fiscal year ended June 30, 2019, the pension fund returned a net 5.2%.
By asset class, the best performer for the fiscal year ended June 30 was domestic fixed income, which returned a net 8.4% (equal to its benchmark), followed by domestic equities at a net 6.3% (above its 6.1% benchmark); international developed markets equities, 3.9% (-5.4%); private equity, 3.8% (12.8%); real assets, 2.1% (4.7%); opportunistic credit, -0.4% (3.9%); private real estate, -0.9% (4.9%); and hedge funds, -2.1% (-0.2%).
Emerging markets equities' results were also included, although the managers, Artisan Partners and RWC Partners, have only been with the pension fund since December. Net returns for the six months ended June 30 was 16.8%.
As of June 30, the pension fund's actual allocation was: 27.5% domestic equities; 17.7% domestic fixed income; 11.9% international developed markets equities; 10% hedge funds; 9.8% emerging markets equities; 6.5% private real estate; 5.2% each private equity and real assets; 4.9% opportunistic credit; and 1.3% cash.
Kristen Santos, retirement administrator, could not be immediately reached for further information.
