The San Bernardino County Employees’ Retirement Association (SBCERA) is proud to report a preliminary +33% net return on investments for the 12-month period that ended June 30, 2021.
SBCERA has made a strong recovery after a tough fiscal year end result in June 2020 and has earned over $3 billion in gains in the fiscal year, with an ending Net Asset Value (NAV) of $13.4 billion as of June 30, 2021. The strong fiscal year return was driven by investments in Private Equity, Credit, Public Equity, Emerging Market Equity, and Small Cap Equity.
This is the biggest return in SBCERA history—both from an absolute dollar increase as well as percentage return basis. Our strategic investment approach will continue to help provide retirement security to our members now and well into the future.
“This record-breaking return on investments is a result of our long-term and opportunistic strategy, our skilled team, and steady advice from our investment partners, including NEPC,” said Neal Waner, Chair of the SBCERA Board and Investment Committee. “These results tell us that we have a dependable and versatile strategy in place to pay promised benefits to our members for years to come.”
Over the last 40 years, we have earned an average annual return of more than 8% on our investments, a period which includes numerous recessions and other economic disruptions—including the global financial crisis, which had an even broader sell-off than the one the world faced this last year.
This year’s record return will substantially improve the Plan’s funded status on both a market value and actuarial value basis. SBCERA’s Actuarial Valuation and Review as of June 30, 2021, will be available in the fall of 2021.
“I’m very proud of our results,” said Donald Pierce, Chief Investment Officer. “The investment team worked diligently with our advisors and managers to deploy capital into great assets. While we don’t count on these kinds of returns each year, I’m confident we are prepared to fulfill the long-term commitment our members are counting on, while continuing to find appropriate opportunities to achieve our investment return goals—no matter what the economic climate brings.”
SBCERA’s 2020-21 final fiscal year investment performance will be calculated based on audited figures and will be a contributing factor in SBCERA’s Actuarial Valuation and Review, which determines contribution levels for our participating employers and employees.