Investment Update

In recent months, our long-term strategy has shown resilience. SBCERA has an investment strategy designed to generate positive returns over decades—rather than weeks or months.

SBCERA earned a 7.3% return on investments for the 12-month period that ended January 2024. (The 7.3% is “net of fees,” which means that we’ve already subtracted all costs associated with the investment—like management or transaction expenses.)

The fund had less invested in stocks and more in bonds, which affected how it performed compared to other investments. However, our approach to credit investments did better than we expected.

As markets have rallied, the value of our credit investments has also seen meaningful price improvements. While the amount we expect to earn from these investments in the future is not as high as before, these investments remain at a very strong 11%.

It’s important to remember 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. As we continue investing for the long-term, our proactive approach will help ensure we meet our commitment in delivering lifelong benefits our members have earned through their years of public service.

Over the last 10 years, we have earned an 7.1% annualized return with 30% less volatility than our peers. This means we are more stable, with a smoother and more predictable path for returns. Additionally, over the last 40 years, we’ve earned an average annual return of more than 8.7%, a period which includes numerous recessions and other economic disruptions.

While our fund is not immune to short-term volatility, our investment strategy is built to minimize volatility and maximize investment returns so we can continue providing retirement security to our members now and well into the future.

You can learn more about SBCERA’s Investments by visiting our website at www.SBCERA.org/Investments.