San Diego County Employees returns 9.6% for fiscal year

San Diego County Employees Retirement Association earned a 9.6% net return for the fiscal year ended June 30, outperforming its 9.4% benchmark, according to the $15.9 billion pension fund's latest performance report.

However, the pension fund underperformed its policy benchmark in all the longer time periods except the three-year period through June 30, in which it earned an annualized net 7.5%, above its 7.4% policy benchmark. SDCERA returned an annualized net 5.8% for the five years ended June 30, below its 6% policy benchmark; an annualized net 6.5%, less than its 6.6% policy benchmark, for 10 years; and 7.2% for 20 years, underperforming its 7.4% policy benchmark.

The pension fund had returned a net a -9.4% for the fiscal year ended June 30, 2022.

SDCERA's best-performing asset class in the fiscal year was public equity with a 16.9% return, outpacing its 16.1% benchmark. It's worst-performing asset class in the year ended June 30 was private assets at 0.3%, underperforming its 1.6% benchmark.

As of June 30, the pension fund's actual allocation was 52.4% public equity, 26.8% fixed income, 14.5% private assets and 6.3% opportunistic.

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.