SBCO

Saturday, February 28, 2015 – 01:00 p.m.

San Bernardino County’s pension fund has underperformed for the first half of its current fiscal year.

Unless the situation dramatically improves, the county will face renewed pressure on its pension contribution levels.

For the quarter ended December 31, 2014, the fund, San Bernardino Employees Retirement Association (SBCERA), earned 0.3%. For its fiscal year-to-date, the fund has earned 0.8%.

The fund, with two quarters remaining in its current fiscal year, needs to meet or exceed its benchmark of 7.5% to cover benefit payments and expenses. Anything less increases the pension system’s nearly $2 billion in unfunded liability.

On a fiscal year-to-date basis, SBCERA ranks in the 24th percentile against its peers. The funds 10-year annual return of 5.8% ranks in the 78th percentile.

SBCERA has yet to update its website to reflect the new data presented at it’s February 5, 2015 meeting.

Since the 2008 market collapse, the pension fund Board of Trustee’s has adopted a policy to cut volatility. However that policy inherently limits investment return potential. A review of the funds investment performance, to be presented Thursday, indicates volatility has in fact decreased. But fund investment returns have suffered.

To read the Investment Review, click the following link: SBCERA Investment Performance Report – 01312015

To read the 2nd Quarter Investment Summary, click the following link: SBCERA – FY2014-15 Q2 Investment Summary