Stanislaus County returns 5.1% in fiscal year, falls short of benchmark

Stanislaus County Employees' Retirement Association, Modesto, Calif., returned a net 5.1% for the fiscal year ended June 30, an investment report posted on the $2.2 billion pension fund's website shows.

The return falls short of the pension fund's policy benchmark index return of 5.9%.

For the three, five and 10 years ended June 30, the pension fund returned an annualized net 9.1%, 5.8% and 9.8%, respectively, compared to their respective benchmarks of 8.3%, 6% and 9.4%.

For the fiscal year ended June 30, 2018, the pension fund returned a net 8.1%.

Among the pension fund's asset classes, infrastructure had the highest net return for the fiscal year ended June 30, at 12.4% (above its 6.7% benchmark return), followed by risk parity at 9.3% (above its 6.1% benchmark return).

Domestic equities followed at a net 7.6% (above its 7.3% benchmark return), followed by real estate at a net 6.6% (9.8%), domestic fixed income at 6.5% (7.9%), private credit at 3.7% (6%) and international equities at -0.8% (1.8%).

As of June 30, the actual allocation was 25.7% international equities; 19.3% domestic short-term fixed income; 14.1% risk parity; 10.6% domestic large-cap equities; 6.9% core real estate; 5.7% private equity; 4.3% private credit; 3.7% value-added real estate; 3.6% domestic small-cap equities; 2.9% U.S. Treasuries; 1.9% infrastructure and 1.3% cash and equivalents.The target allocation is: 23% international equities; 19% domestic short-term fixed income; 14% domestic large-cap equities; 13% risk parity; 6% each, private credit and private equity; 5% each, core real estate and value-added real estate; 3% each, domestic small-cap equities and U.S. Treasuries; 2% infrastructure and 1% cash and equivalents.

Stan Conwell, retirement investment officer, could not be immediately reached to provide further information.