Stanislaus County Employees’ Pension Fund posts -7.5% return for the year, below benchmark

The latest pension fund returns for the fiscal year reflect a challenging return environment for public equities and fixed income securities over the past year. For the year ended June 30, the Russell 3000 Index and Bloomberg US Aggregate Bond Index posted returns of -13.9% and -10.3%, respectively, in stark contrast to returns of 44. 2% and 4.6% for the year ended June 30, 2021.

For the three, five and 10 years ended June 30, StanCERA posted an annualized net return of 5.5%, 5.9% and 6%, respectively, below their respective benchmarks of 5.7%, 6, 1% and 6.3%.

The pension fund had generated a net return of 25.2% for the year ended June 30, 2021.

For the most recent fiscal year, value-added real estate had the strongest return, netting 12.6% for the year ended June 30 (below its benchmark by 20%) , followed by basic real estate at 11.9% (17.6%).

Next came infrastructure, which posted a net return of -1.4% (below the benchmark of 14.5%); liquidity at -3.7% (above the benchmark of -8.2%); private credit, -6.9% (-0.8%); private equity, -8.9% (benchmark lagging by a quarter); US Treasuries, -9.7% (-10.5%); risk parity, -12.6% (-15.4%); domestic stocks, -12.7% (-13.9%); and international equities, -16.9% (-19.4%).

As of June 30, the actual allocation was 20.5% Domestic Equity, 18% International Equity, 9.8% Core Real Estate, 9.7% Risk Parity, 7.6% Credit 7.3% cash, 7% infrastructure, 6% US Treasuries, 5.3% private equity, 5% value-added real estate, and 3.8% cash absolute return.

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