The latest fiscal year's improved performance likely benefited from stronger market returns for the period in both equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above their respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
Of the 44 public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Tuesday, the median return for the period was 7.6%.
By asset class, SBCERS' top performer was domestic equities, which posted a net return of 18.5% for the fiscal year ended June 30 (just below the benchmark return of 19%); followed by international developed markets equities, which returned a net 17.5% (18.8% benchmark); non-core fixed income, 9.8% (9.8%); emerging markets equities, 8.7% (1.8%); real return, 6.7% (7.1%); real estate, 0.7% (-3.9%); private equity, 0.3% (-5.8%); and core fixed income, -0.5% (-0.9%).
As of June 30, the actual allocation was 18.2% domestic equities, 14.7% core fixed income, 14.3% real return, 13.8% private equity, 11% real estate, 10.3% non-core fixed income, 10.1% international developed markets equities, 6.3% emerging markets equities, 1.1% cash and the rest in other.
The target allocation is 19% domestic equities, 17% core fixed income, 15% real return, 11% each international developed markets equities and non-core fixed income, 10% each private equity and real estate, and 7% emerging markets equities.