LACERA reports 6.4% gross return for fiscal year ending June 30

The Los Angeles County Employees Retirement Association (LACERA), which has roughly $74 billion in total assets, reported a 6.4 percent gross return on investments for the fiscal year ending on June 30.

While that return outperformed its policy benchmark, it underperformed the 7 percent hurdle rate the fund sets for itself. The largest contributor to the 6.4 percent return came from the fund’s growth assets, which make up 53.2 percent of its portfolio holdings and saw a 10.2 percent net return for the fiscal year.

Credit holdings, comprising 11.3 percent of the fund’s allocations, returned net 7.7 percent, while real assets and inflation hedges, making up 16.4 percent of the fund, returned 0.1 percent. Risk reduction and mitigation, which makes up 18.6 percent of the fund’s investments, saw a –0.2 percent net loss for the fiscal year.

LACERA reported an annualized 10.1 percent net return over the past three years, 7.6 percent over the past five years, an