SDCERS reports high investment returns

SAN DIEGO (CNS) – The San Diego City Employees Retirement System Wednesday reported a preliminary 16.6% net investment return for the fiscal year that ended June 30, which is well above the assumed annual average.

SDCERS reported a 13.6% return the year before.

For pension systems, a stronger investment performance lessens the financial contributions that member agencies will need to make in the next fiscal year, leaving more money available for public services.

SDCERS handles retirement plans for the city of San Diego, Port of San Diego and San Diego County Regional Airport Authority.

SDCERS investment officers credited strong performances by U.S. and international stocks. The returns do not yet include final results for private equity and real estate, so the final tally won’t be released until the fall.

The pension system assumes a return of 7.25%. As of June 30, the estimated three-year return was 9.9%. Over five years, the growth was 13.3%, and 7.7% for 10 years.

Assets under management by SDCERS grew by $900 million during the last fiscal year.

On July 1, the pension system announced that managed assets surpassed the $7 billion mark for the first time in system history.

SDCERS provides retirement, disability retirement, death and survivor benefits to more than 20,000 members.