SDCERA reports preliminary investment returns for fiscal year 2015
The San Diego County Employees Retirement Association (SDCERA) reported a preliminary 2.67 percent net investment return for the fiscal year ending June 30, 2015. During the same time period, SDCERA’s estimated three-year net investment return was 7.86 percent, the five-year return was 9.91 percent, and the 10-year return was 6.08 percent. The fund has generated a 25-year return of 8.43 percent. These returns have contributed to the growth of SDCERA’s assets under management to $10.6 billion as of June 30, 2015.
The San Diego County Employees Retirement Association (SDCERA) announced today that Elaine Reagan has been hired as SDCERA’s Chief Legal Officer. Ms. Reagan will begin working at SDCERA on August 21 where she will oversee the delivery of legal services to the Board of Retirement and SDCERA staff.
Ms. Reagan joins SDCERA from the San Diego City Employees’ Retirement System (SDCERS) where she is currently Deputy CEO, Compliance and Legal Operations, which includes the responsibilities of Deputy CEO, General Counsel and Chief Compliance Officer. Prior to her tenure at SDCERS, Ms. Reagan served as legal counsel for the Orange County Employees’ Retirement System (OCERS).
“Elaine has directly contributed to the success of two retirement systems, and we look forward to benefiting from her experience,” said Skip Murphy, SDCERA Board Chair. “Her wealth of pension knowledge will be an asset in all facets of SDCERA’s operations.”
SDCERA continues transition to in-house investment program
The San Diego County Employees Retirement Association (SDCERA) announced that its Board of Retirement has taken another step in its planned move to an in-house investment program.
During its monthly Investment meeting held today, the Board voted to terminate its Investment Advisory Services Agreement with Salient Partners, effective August 15, 2015. This decision continues the Board’s implementation of the strategic decision it made in November 2014 to transition management of SDCERA’s portfolio to an internal investment management structure from an outsourced model. In May 2015, the Board hired Stephen C. Sexauer to become SDCERA’s Chief Investment Officer (CIO).
‘‘The Board’s decision today to terminate our agreement with Salient Partners reflects our philosophical shift to return to an in-house investment management program,’’ said E. F. ‘‘Skip’’ Murphy, SDCERA’s Board Chair.
Stephen Sexauer hired as SDCERA Chief Investment Officer
The San Diego County Employees Retirement Association (SDCERA) announced today the hiring of accomplished investment executive Stephen Sexauer as Chief Investment Officer (CIO) of the $10.6 billion public pension fund.
As SDCERA’s CIO, Mr. Sexauer will oversee SDCERA’s investment strategy for the fund’s public and private investments, investment team, and investment consultants. In addition to the day-to-day operation of SDCERA’s investments division, he will also play an important role in assisting the Board with determining the fund’s investment policies, strategy and asset allocation. Mr. Sexauer will coordinate the transition of responsibilities from SDCERA’s current Portfolio Strategist, Salient Partners. His first day at SDCERA will be May 29, 2015.
“SDCERA’s Board of Retirement is very pleased to have found an exceptional professional with 30 years of investment-industry expertise. Steve’s keen grasp of global financial markets and his direct experience managing large multi-asset portfolios stood out during the interview process,” said Board of Retirement Chair Skip Murphy. “SDCERA’s leadership team is taking shape, and the Board is eager to move forward on reviewing SDCERA’s asset allocation and investment policies. Mr. Sexauer’s experienced investment counsel will be a big assist in this process.”
Previously, Mr. Sexauer worked at Allianz Global Investors as Chief Investment Officer of Allianz Global Investors Solutions, managing over $7 billion in multi-asset institutional portfolios and retirement income solutions. Mr. Sexauer is also the co-author of papers on retirement portfolios published in the Financial Analysts Journal, The Institutional Investor Journal of Retirement, and The Retirement Management Journal. He graduated with an MBA in Economics and Statistics from the University of Chicago, IL.
“Steve is a great addition to SDCERA’s management team, and he will be a great CIO,” said SDCERA’s Interim CEO David Wescoe. “The Board is putting excellent people in place that will strengthen the fund for the benefit of SDCERA’s members over the long-term.”
Sexauer said, “It’s a privilege to join the SDCERA team. I look forward to working with the Board, investment staff, Interim CEO David Wescoe and CFO Greg Bych to enhance SDCERA’s internal investment capability and contribute to SDCERA’s mission of providing secure pension benefits to its members.”
SDCERA’s Board of Retirement announced today that experienced public sector executive Greg Bych has been hired as SDCERA’s Chief Financial Officer. Mr. Bych will begin working at SDCERA on June 8 and oversee SDCERA’s finance, accounting and internal audit functions. Prior to joining SDCERA, Mr. Bych worked at the City of San Diego for 25 years during which he held positions as Interim Chief Financial Officer and Director of Risk Management. He served on the San Diego City Employees’ Retirement System (SDCERS) Board and was a member of SDCERS' investment committee.
“Greg’s financial expertise, leadership skills and experience with retirement systems and investments will serve him well as he oversees SDCERA’s finance group,” said Skip Murphy, SDCERA Board Chair.
David Wescoe, SDCERA’s Interim Chief Executive Officer, who chaired the CFO Search Committee said, “I couldn’t be more pleased with the results of our CFO search. Greg is a respected and talented executive who will bring many skills to SDCERA. His prior experience, including sitting as a trustee on the SDCERS Board, will be a great benefit to SDCERA’s Board, management team and staff.”
“There are a lot of exciting and challenging opportunities on the horizon at SDCERA," said Bych. "I am looking forward to being a part of the SDCERA team and continuing to serve the public and the nearly 40,000 SDCERA members."
Retired members to receive 2% to 3% COLA effective with the April benefit payment
Members who retired on or before March 31, 2015, are eligible for this year’s 2% cost-of-living adjustment (COLA) beginning in the April 30 benefit payment.
The maximum COLA varies by tier – up to 3% for retired Tier I, Tier II and Tier A members, and up to 2% for retired Tier B and Tier C members. Members with a positive COLA bank are eligible to receive up to their maximum increase, depending on retirement date, as outlined below.