SDCERS Reports 13.5% Final Investment Return for Fiscal Year 2017

Date: Oct 16, 2017


San Diego City Employees’ Retirement System (SDCERS) reported a final return of 13.5% (net of fees) for the fiscal year ending June 30, 2017. Total Fund assets totaled $7.5 billion, representing growth of approximately $686 million during the fiscal year. While each asset class generated positive returns, the Fund’s double-digit return was primarily driven by public equities.

Returns for stocks were strong across the board.  SDCERS’ U.S. stock performance was 21.3% which was helped by an overweight to small cap stocks. U.S. markets were buoyed by steady economic growth, job gains, and limited inflationary pressures. Markets abroad also rebounded from concerns over Britain’s vote to leave the European Union last summer and expected stimulus from central banks. SDCERS’ non-U.S. stocks rose 19.9% during the year. Fixed income returns in the U.S. were muted as yields rose during the fiscal year while emerging market debt returned 7.2%.
Private markets investments continued to provide strong returns with Real Estate up 8.2% and Private Equity and Infrastructure up 18.5%.

Longer term returns over 20 years and since inception are 7.7% and 9.0% respectively, and rank in the top 2nd and 8th percentiles of the public funds universe.

SDCERS, established in 1927, maintains a successful long-term investment strategy to ensure the continued payment of benefits to its members. SDCERS administers defined benefit plans for the City of San Diego, the San Diego Unified Port District, and the San Diego Regional Airport Authority, and provides service retirement, disability retirement, and death and survivor benefits to more than 20,000 members.


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