Investment Update

We continue to have strong returns over the last 12 months, but there’s been some recent turbulence in the markets in 2022 related to inflation concerns, rising interest rates, and supply chain fragility. SBCERA earned an 8.4% return on investments for the 12-month period that ended April 30, 2022. (The 8.4% is “net of fees,” which means that we’ve already subtracted all costs associated with the investment—like management or transaction expenses.) We also strongly outperformed our policy index by a staggering +10 percentage points. The policy index is a benchmarking tool that compares SBCERA’s portfolio to a broadly diversified global stock and bond portfolio. The index helps us monitor and evaluate the fund’s overall asset allocation and investment implementation efficacy.
 
It’s important to note that although investment returns are a sign of overall health for the SBCERA fund, your benefits are not tied to these returns—no matter what the economic climate brings. In recent months, during a time of global economic stress, our long-term strategy has shown resilience. Over the last 10 years, we have earned an 8.8% annualized return with 30% less volatility than our peers, and over the last 40 years, we’ve earned an average annual return of more than 8%, a period which includes numerous recessions and other economic disruptions. While our fund is not immune to short-term volatility, our proactive strategy helps SBCERA provide retirement security to our members now and well into the future.

Click the link below to read the full Investment Report.
State Street Investment Report - April 30, 2022