Jan-Feb-Mar 2013 - sdcera

San Diego County Employees Retirement Association
2275 Rio Bonito Way, Suite 200
San Diego, CA 92108-1685
PRSRT STD
U.S. POSTAGE
PAID
PDM
Investment report
%$ The SDCERA fund’s
focus on diversification is paying off.
Over the three-year period ended
September 30, 2012, SDCERA
outperformed its peers, according
to the Wilshire Trust Universe
Comparison Service (TUCS). The
fund generated an 11.4% annualized
rate of return over that period,
outpacing its benchmark return of
10.2%, the median fund return of
9.5%, and the fund’s 8.0% assumed
rate of return.
In the third quarter of 2012,
the European debt crisis, the
approaching fiscal cliff and central
bank stimulus signified a world‐wide
syndrome of unsustainable debt.
In mid‐September, the Federal
Reserve offered evidence that it was
going to try to inflate its way out
of debt by increasing the supply of
money in circulation for the third
time since 2008, with the purpose
of stimulating lending and
encouraging economic growth.
Despite the volatile environment,
SDCERA’s approach to
diversification produced promising
returns. For the quarter ended
September 30, 2012, SDCERA’s
portfolio generated a positive
4.8% return. Each of the three
major components of the overall
portfolio contributed positive
returns to the fund as a whole.
Returns for quarter ended September 30, 2012 (gross of fees)
Total assets under management: $9,127,564,595.
SDCERA Returns Quarter 1–Year 3–Year 5–Year
Growth oriented 1
Growth oriented benchmark
Stable value 2
Stable value benchmark
Inflation sensitive 3
Inflation sensitive benchmark
Total fund
Total fund benchmark
5.7%
5.7%
2.5%
1.5%
3.8%
5.2%
4.8%
4.6%
20.4%
21.3%
7.2%
5.0%
12.9%
15.0%
17.3%
15.9%
1
Global, Emerging Market, Private Equities, and High Yield Bonds
8.8%
9.0%
8.7%
6.7%
10.7%
11.0%
11.4%
10.2%
0.5%
0.0%
8.3%
6.9%
2.6%
4.3%
2.7%
3.4%
2
Emerging Market Debt (Local), Global Macro CTAs, Relative Value, and U.S. Treasuries
3
Real Estate, Natural Resources and Other Real Assets, and Treasury Inflation Protected Securities
8
SAN DIEGO COUNTY EMPLOYEES RETIREMENT ASSOCIATION