San Jose (Calif.) Police & Fire Department Retirement Plan returned a net 9.7% for the fiscal year ended June 30.
The $5.1 billion pension fund’s return equaled its policy benchmark return of 9.7% for the period, according to a performance report on its website.
For the three, five and 10 years ended June 30, the pension fund returned an annualized net 3.9%, 7.8% and 5.8%, respectively, compared with the respective benchmarks of 3.9%, 7.6% and 5.9%.
The pension fund had returned a net 7.7% for the fiscal year ended June 30, 2023.
For the most recent fiscal year, the pension fund’s return was just short of the median return of 9.8% among the 54 U.S. public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Sept. 6.
By asset class, the best-performer was public equities, which returned a net 18.2% for the fiscal year ended June 30 (above its benchmark return of 18.1%); followed by private markets, which returned a net 5.6% (equal to its benchmark); high-yield bonds, 10.1% (10.4%); market neutral strategies, 8% (7%); Treasury inflation-protected securities, 5.4% (5.4%); investment-grade bonds, 4.7% (2.6%); emerging markets debt, 4.3% (4.9%); immunized cash flows, 4.2% (4.2%); long-term government bonds, -5.5% (-5.6%); and core real estate, -11.9% (-12%).
As of June 30, the actual allocation was 42% public equities, 27.2% private markets, 10.1% immunized cash flows, 4.4% core real estate, 4.1% investment-grade bonds, 2.9% market-neutral strategies, 2.1% cash, 2% high-yield bonds, 1.9% each emerging markets debt and TIPS, and the rest in long-term government bonds.
The target allocation is 42% public equities; 27.5% private markets; 5.5% cash; 5% each core real estate and immunized cash flows; 4.5% investment-grade bonds; 3% market neutral strategies; 2% each emerging markets debt, high-yield bonds and TIPS; and 1.5% long-term government bonds.
