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 56 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, SCERS' top performer for the fiscal year ended June 30 was public equities, which returned a net 17% for the period (above the benchmark return of 16.5%), followed by infrastructure, which returned a net 7.2% (below its 10.3% benchmark); credit fixed income, 5.7% (9.6%); private equity, -0.8% (-3.4%); core fixed income, -1.2% (-0.9%); and real estate, -2.2% (-3.9%).
As of June 30, the actual allocation was 46% public equities, 18.4% core fixed income, 13.8% private equity, 12.1% real estate, 7% credit fixed income, 2.6% infrastructure and the rest in cash/other.
The target allocation is 48% public equities, 18% core fixed income, 12% real estate, 11% private equity, 7% credit fixed income and 4% infrastructure.
