San Bernardino County inks -3.1% fiscal year loss

San Bernardino County (Calif.) Employees' Retirement Association reported a preliminary net loss of -3.1% in the fiscal year ended June 30.

The $10.1 billion pension fund's preliminary net return fell well below its policy benchmark return of 3.7%, according to an investment report posted on the pension fund's website.

For the three, five and 10 years ended June 30, SBCERS returned an annualized net 3.4%, 4.4% and 7.4%, respectively, compared to the respective benchmarks of 5.6%, 5.6% and 7.3%.

The pension fund returned a net 5% for the fiscal year ended June 30, 2019.

By asset class, both domestic equity with beta overlay and real estate returned a net 3.7% for the fiscal year ended June 30, falling below their respective benchmark returns of 6.5% and 5.3%.

Other asset class returns were: Private equity, returning a net -0.3% for the fiscal year ended June 30 (below its -0.8% benchmark); real assets, which returned a net -3.7% (above its -9.3% benchmark); global fixed income with beta overlay, -4.7% (4.2%); international equities with beta overlay, -5.1% (-4.4%); emerging markets debt, -7.6% (-1.1%); and absolute return, -8.2% (4.3%).

As of June 30, asset classes' net notional exposure was: 19.2% international equities; 17% private equity; 15.9% domestic equities; 13.9% U.S. credit; 11.8% non-U.S. credit; 6.7% emerging markets debt; 5.2% absolute return; 4.5% each real assets and real estate; 4.4% cash; 0.9% domestic core fixed income; and -4% non-U.S. core fixed income.

Pension fund spokesman Michael Tamony could not be immediately reached for further information.