SDCERS Reports Preliminary Return of Three Percent for Fiscal Year 2015

Date: Aug 14, 2015


San Diego City Employees’ Retirement System (SDCERS) reported a preliminary return of 3% (net of fees) for the fiscal year ending June 30, 2015. Assets under management grew $100 million during the fiscal year.
Fiscal year performance trailed returns for the years ending June 30, 2014 (+16.8 % net of fees) and June 30, 2013 (+13.6% net of fees).  FY 2015 negative returns for non-U.S. stocks were influenced by the Greek debt crisis, creating significant uncertainty in the Eurozone. Concerns over the economic slowdown in China and weak emerging market currencies led to losses in emerging markets stocks and bonds. While U.S. fixed income returns were positive, the return of +1.4 % reflected the low interest rate environment.
On a positive note, U.S. stocks contributed the most to Total Fund returns at just under 1/3 of Total Fund assets and returned 6.9%. Private market returns were quite strong, with real estate investments up over 12% and private equity at 15%. The Opportunity Fund (created to add flexibility in the implementation of the asset allocation) returns were up 5.9%. The wide distribution of returns and market volatility continued to highlight the importance of a fully diversified portfolio.
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, death and survivor benefits to more than 20,000 members.

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