Tulare County Employees returns 9% for fiscal year, above benchmark

Tulare County Employees' Retirement Association, Visalia, Calif., returned a net 9% for the fiscal year ended June 30, above the 8.3% of its benchmark.

For the three-, five- and 10-year periods ended June 30, the $2 billion pension fund returned an annualized net 3.3%, 6.5% and 5.6%, respectively, compared with their respective benchmarks of 2.8%, 6.4% and 5.8%, according to an investment performance review posted on TCERA's website.

The pension fund had returned a net 6.7% for the previous fiscal year ended June 20, 2023.

By asset class, for the latest fiscal year, the top performer was domestic equity, which returned a net 22.8% (below the 23.1% for its benchmark); followed by global equity, 12.9% (19.9% benchmark); private credit, 10.5% (10.5%); international equity, 8.1% (12.2%); emerging markets fixed income, 6.6% (4.9%); private equity, 4.4% (7.1%); domestic fixed income, 4% (2.6%); and infrastructure, 3.6% (-9.3%).

The poorest performer was real estate, which returned a net -5.5% (-9.3% for its benchmark).

As of June 30, the pension fund's actual allocation was 29.6% domestic equity (26% target), 18.4% real assets (18%), 17.2% fixed income (20%), 15.9% international equity (16%), 14.6% alternatives (17%), 3.6% global equity (3%), and 0.7% cash and equivalents (zero).