San Francisco City & County Employees returns 7.9% for fiscal year

San Francisco City & County Employees’ Retirement System reported a preliminary gross return of 7.9% for the fiscal year ended June 30.

The $35.3 billion pension fund disclosed the preliminary return in a report from CEO/CIO Alison Romano included with materials for its upcoming July 10 board meeting.

For the three years ended June 30, SFERS reported a preliminary annualized gross return of 3%. Romano’s report did not include benchmark information.

For the fiscal year ended June 30, 2023, the pension fund returned a net 4.3%.

According to Romano’s report, the highest-performing asset class for the fiscal year ended June 30 was public equities, which returned a preliminary gross 18.7%.

While Romano did not cite the reason for public equities’ strong performance, the Russell 3000 index returned 23.1% for the period.

Romano also said in the report that the next-highest preliminary gross return was private credit at 10%, followed by absolute return at 9.5%, fixed income at 6.5%, private equity at 2.3% and real assets at -3.4%.

As of June 30, the actual allocation was 30.3% public equities, 28.5% private equity, 14.7% real assets, 8.7% private credit, 8.5% absolute return, 7.6% fixed income and 1.7% cash.

The target allocation is 37% public equities; 23% private equity; 10% absolute return, private credit and real assets; 8% U.S. Treasuries; 5% public credit and -3% leverage offset.