San Diego County Employees posts 11.3% return for fiscal year

San Diego County Employees Retirement Association delivered an 11.3% net return for the fiscal year ended June 30, slightly below its benchmark return of 11.8%, according to the quarterly investment review included with the materials for the $17.7 billion pension fund's Sept. 19 board meeting.

For the three-, five- and 10-year periods ended June 30, the pension fund returned an annualized net 3.4%, 6.9% and 6.3% respectively, compared with their respective benchmarks of 3%, 7.3% and 6.4%.

SDCERA had returned a net 9.6% for the fiscal year ended June 30, 2023.

For the latest fiscal year, the best-performing asset class was U.S. equity, which returned a net 23.4% (above its benchmark of 22.8%); followed by global equity, 18.7% (18.4%); opportunistic strategies, 14.3% (13.9%); emerging markets equity, 13.1% (12.5%); international equity, 12.1% (11%); return-seeking fixed income, 11.2% (10.5%); risk-reducing fixed income, 4.6% (3.5%); and private equity, 3.6% (18.4%).

The poorest performers were real estate at a net -13% (-10% benchmark); private debt, -1.7% (13.9%); and private real assets, -0.7% (18.4%).

As of June 30, the pension fund's actual asset allocation was 50.7% public equity, 30.6% fixed income, 12.1% private assets and 6.6% opportunistic strategies.

SDCERA's target allocation is 25% U.S. equity, 19% risk-reducing fixed income, 12% international equity, 10% real estate, 8% global equity, 6% return-seeking fixed income, 6% opportunistic, 6% private equity, 5% emerging markets equity and 3% private debt.