SDCERA reported preliminary gains of 6.31% (5.75% net) in the 12-month period ending December 31, 2011, outperforming both its benchmark of 5.47% and most public plans with assets over $1 billion. SDCERA ranks highly among its peers: According to the latest Trust Universe Comparison Service (TUCS) report, SDCERA ranked in the top 4% for both the one-year and two-year periods ending September 30, 2011.

This strong performance demonstrates the success of SDCERA’s strategically diversified portfolio. Implemented in July 2010, the portfolio is designed to produce moderate but steady gains in up markets and protect assets during volatile markets. The calendar year gains added approximately $492 million to the fund.

“SDCERA is proud of our ability to perform well in a variety of market conditions. Our investment program implements sound strategies, which have generated strong average annual returns over the long term. SDCERA’s 25-year average annual return is 10.01%, which demonstrates the strength of the fund and the security of the benefits,” stated Brian White, Chief Executive Officer.

Among its peers, SDCERA’s investment program ranks in the top 4% for a two-year period ending September 30, 2011, according to the latest Trust Universe Comparison Service (TUCS) report.

Prudent management and a strategically diversified asset allocation strategy that is focused on moderate but steady gains in up markets and downside protection amid volatility is credited as the driver of SDCERA’s performance during this period. A prime example of SDCERA’s downside protection is its investment in the Hoisington Treasury program, which has generated healthy returns while equity markets have been down. During the volatile third quarter of 2011, this investment protected the majority of the 21% gains from fiscal year 2011, which ended June 30.

The TUCS report is released on a quarterly basis by Wilshire Associates Incorporated, an independent global advisory company specializing in investment products, consulting services, and technology products. It is a widely accepted benchmark for the performance of institutional assets and provides comprehensive information on the effects of risk, allocation, and style, creating powerful decision-making tools based on accurate and timely information. TUCS represents the largest database of any peer-comparison service in the industry. Peers were considered any public plan with assets over $1 billion.
 

SDCERA has complied with an appellate court ruling to disclose the member names, last County employer, retirement benefit amount and calculation of retirees receiving $8,333.33 or more in monthly benefits. The action followed a vigorously fought lawsuit with the California Foundation for Fiscal Responsibility (CFFR) in which SDCERA and the Board of Retirement argued that member confidentiality and privacy should not be violated. The court ruled otherwise.

A list of the 368 SDCERA members receiving the benefit amount requested was provided Wednesday, September 7, to CFFR, the San Diego Union-Tribune, NBC 7/39, and other agencies and media outlets that had filed requests for the information. SDCERA is reviewing additional requests for this information, including requests for information on all SDCERA members receiving benefits of any amount.

Courts across the State of California have recently upheld similar requests to reveal member names with benefit amounts received and to disclose the calculations that determine the benefit totals for all public employees. 
 

SDCERA has obtained the direction it sought from the appellate courts in an untested legal area and mitigated the potential for harm associated with requiring the release of the names and benefit amounts of members receiving retirement benefits in excess of $100,000. As such, SDCERA does not see a point in continuing to litigate in the Supreme Court.

SDCERA did not originally produce the information in response to a request by the California Foundation for Fiscal Responsibility (CFFR) to disclose the information because according to the 1937 Act retirement law, which governs SDCERA, such information is considered private. At the time, the law was unclear as no appellate court had previously addressed the issue. Additionally, SDCERA members expressed concern for their safety, for which the trial court agreed SDCERA made a strong and undisputed evidentiary showing of potential financial and physical harm to members that could result from such disclosure.

The Board owed it to its members to protect them from disclosure, and did the right thing in fighting for their safety and allowing the courts to decide. The appellate court has ruled in a published opinion that certain information should be disclosed to CFFR, but that CFFR is prohibited from posting the last names on the internet or any publicly available site. SDCERA stands by its decision to take the issue to court rather than have produced the information in the face of unclear law and accepted any risk of harm to our members without fighting for concessions. SDCERA has negotiated a favorable resolution of the issue of legal fees at a reduced amount of $121,400.

SAN DIEGO — San Diego County Employees Retirement Association (SDCERA) today reported preliminary investment returns of more than 21% for fiscal year 2011, adding approximately $1.6 billion to the pension fund.

The fund credits its diversification strategy for generating strong returns and outperforming the 8% assumed rate of return for a second year in a row.

“SDCERA’s Board of Retirement designed the investment model to perform well in a variety of market conditions, generating steady performance over the long term and ensuring members’ future retirement benefits are secure. Performance results show the fund is working as designed,” stated Chief Executive Officer Brian White.

To view the press release, click SDCERA announces preliminary fund gains of more than 21% for fiscal year 2011.

SAN DIEGO — The San Diego County Employees Retirement Association (SDCERA) was named Small Public Plan of the Year by Institutional Investor magazine at the 9th Annual Hedge Fund Industry Awards on June 20, 2011.

Nominees were selected based on demonstrated skill in absolute return investing during the past year as well as an overall ability to construct and manage hedge fund portfolios. SDCERA’s portfolio for the 2010 calendar year generated a 12.2% rate of return, exceeding the 8% assumed rate of return and outpacing the 11.03% benchmark by 1.17%. Hedge funds play an important role in SDCERA’s highly diversified portfolio; strategically chosen among institutional quality funds they can add value in declining markets and protect capital.

To view the press release, click SDCERA wins Small Public Plan of the Year award.