SBCERA Reports Preliminary 9.3% Investment Return for the 2023-24 Fiscal Year

The San Bernardino County Employees’ Retirement Association (SBCERA) announces a preliminary 9.3% net return on investments for the 12-month period that ended June 30, 2024. Assets stood at $15.2 billion at the end of the fiscal year.

The preliminary investment return outpaced the plan’s actuarial assumed rate of return and stands in contrast from recent fiscal years, where market conditions were influenced by a variety of economic and geopolitical challenges.  Our investment strategy was well-prepared to find opportunities during an improving economic climate this past year.

“Our fund is positioned well for both market volatility and long-term investments and this year’s results continue to reflect that,” said Jared Newcomer, Chair of the SBCERA Investment Committee. “As we continue to navigate unpredictability and future global economic stress, I’m confident our strategy will help ensure we meet our commitment in delivering lifelong benefits our members are counting on.”

Total fund annualized returns for the five-year period ending June 30, 2024, stood at 8.2% versus our funding policy expectation of 7.25% (Returns are “net of fees,” which means that we’ve already subtracted all costs associated with the investment—like management or transaction expenses.)

“I’m proud of our Investment Team for their diligence and proactive posture that prepared our fund for today’s economic climate,” said Debby Cherney, SBCERA Chief Executive Officer. “I’m also grateful we have a supportive Board that continues to empower our team to work together cohesively, allowing us to be nimble enough to make quick decisions and take advantage of market opportunities.”

SBCERA has a long-term investment strategy, focused on income, and we’ve built an investment portfolio designed to generate positive returns over decades—rather than weeks or months.

Over the past 40 years, we’ve earned an average annual return of almost 9% on our investments, a period which includes numerous recessions and other economic disruptions. 

“At SBCERA, we balance an opportunistic approach with a long-term investment strategy,” said Donald Pierce, SBCERA Chief Investment Officer. “Our team will continue finding appropriate opportunities to achieve our investment return goals—no matter what the economic climate brings.”

SBCERA’s 2023-24 final fiscal year investment performance will be calculated based on audited figures. The ending value of the fund is based on several factors and not investment performance alone. Contributions made to SBCERA from employers and employees, monthly payments made to retirees, investments fees, and the performance of its investments, among other factors, will all be considered in SBCERA’s Actuarial Valuation and Review, which determines contribution levels for our participating employers and employees.

About SBCERA

The San Bernardino County Employees’ Retirement Association (SBCERA) is an independent, defined benefit pension plan providing retirement, disability, and death benefits on behalf of 17 employers throughout California, comprised of over 48,000 members and beneficiaries. SBCERA continues to be “The Foundation for a Secure Retirement” for SBCERA members and serves as a stable, reliable source of income—both for those already enjoying retirement and those who will retire in the years to come. To learn more, please visit SBCERA.org.

For media inquiries, please contact: Olivia Applegate, Director of Communications & Stakeholder Relations at oapplegate@SBCERA.org or 909.341.0651.