Ventura County (Calif.) Employees' Retirement Association reported a preliminary net return of 2.7% for the fiscal year ended June 30.
The $5.8 billion pension fund's preliminary return fell short of its policy benchmark return of 4.8% for the year, according to an investment report on its website.
Dan Gallagher, chief investment officer, said in an email that final audited returns will likely be available before the end of August.
For the three, five and 10 years ended June 30, VCERA returned an annualized net 6.2%, 6.3% and 8.9%, respectively, below the respective policy benchmarks of 7.1%, 7.2% and 9.2%.
The pension fund returned a net 7% for the fiscal year ended June 30, 2019.
The best performing asset class was U.S. Treasuries, which returned a net 14.9% for the fiscal year (equal to its benchmark), followed by domestic fixed income, which returned a net 8.9% (above its 8.7% benchmark).
Other asset class returns were domestic equities, which returned a net 6.6% for the fiscal year ended June 30 (above its 6.5% benchmark); private equity, which returned a net 3.2% (below its 9.7% benchmark); global equities, 2.5% (2.1%); real estate, 2.1% (3.1%); private debt, -1.5% (0.6%); international equities, -6.6% (-4.8%); and real assets, -9.6% (2.7%).
As of June 30, the actual allocation was 28.6% domestic equities, 15.9% domestic fixed income, 15% international equities, 10.8% global equities, 8.7% private equity, 7.7% real estate, 7.4% real assets, 2.2% private debt, 2.1% overlay and 1.6% U.S. Treasuries.
The target allocation is 26% domestic equities, 17% international equities, 14% domestic fixed income, 13% private equity, 10% global equities, 8% real estate, 7% real assets, 3% private debt and 2% U.S. Treasuries.
