San Jose Employees posts 7.5% return for fiscal year

The $2.88 billion San Jose Federated City Employees’ Retirement System (SJFCERS) has posted a net return of 7.5 percent for the fiscal year that ended on June 30, slightly underperforming its benchmark of 7.8 percent.

During the past three-, five- and 10-year periods, SJFCERS has generated annualized net returns of 9.9 percent, 7.5 percent and 6.3 percent, respectively, compared with the respective time periods’ benchmarks of 9.4 percent, 7.1 percent and 6.5 percent.

SJFCERS has 5.5 percent ($157.3 million) of its portfolio invested in core private real estate. Those investments returned –0.2 percent for the fiscal year, outperforming its benchmark of –3.9 percent. Over the past three- and five-year periods, SJFCERS’s core private real estate investments have generated net annualized returns of 10.1 percent and 8.3 percent, respectively, compared with their respective benchmarks of 8.1 percent and 6.2 percent.

Some 2.4 percent ($68.4 million) of SJFCER