San Mateo County Employees reports 5.6% fiscal-year return

San Mateo County Employees' Retirement Association, Redwood City, Calif., reported a net return of 5.6% for the fiscal year ended June 30, underperforming its benchmark's return of 6.8%, according to an investment report included with materials for the July 25 board meeting.

For the three-, five- and 10-year periods ended June 30, the $6 billion SamCERA returned an annualized net 7.9%, 5.8% and 6.9%, respectively, compared with their respective benchmark returns of 8%, 6.5% and 7.3%.

The pension fund had returned a net -4.7% for the fiscal year ended June 30, 2022, slightly exceeding its benchmark return of -4.9% that year.

By asset class for the fiscal year ended June 30, the pension fund reported a net return of 15.1% for total equities (below the benchmark return of 16.7%); liquidity assets returned 3% (benchmark 1.5%); fixed income, 0.6% (2.7%); inflation-hedged assets, -0.4% (-4.2%); and alternatives, -3.1% (1.6%).

As of June 30, SamCERA's actual allocation was 22.6% domestic equities, 22% fixed income, 18.8% international equities, 8.9% real estate, 7.6% liquidity assets, 6.5% private equity, 5.8% absolute return, 5.4% private real assets, and the rest in public real assets.

SamCERA spokeswoman Natasha Jeong could not be immediately reached for further details.