SDCERS’ Final Investment Return for Fiscal Year 2026

At today’s Board meeting, SDCERS reported a net return of 14.2% for Fiscal Year 2026. As of June 30, 2026, the trust fund’s assets totaled approximately $13.9 billion. SDCERS’ annualized rate of return over the past 10 years is 8.7% net, and its return since inception (1988) is 8.8% net.

SDCERS’ net return for Fiscal Year 2026 of 14.2% was higher than its assumed rate of return (6.5%), and just below the policy benchmark, which posted a 14.3% return for the year. The policy benchmark is a measure of how the Total Fund would have performed if the actively managed public portions of the portfolio had been completely invested in passive index funds, and if the private portions of the portfolio achieved stated benchmark returns.

Over the course of the Fiscal Year, the portfolio benefitted from outperformance in the Non-U.S. Equity, U.S. Fixed Income, Infrastructure, and Private Debt portfolios. This was offset by underperformance in the Private Equity, U.S. Equity, and Real Estate portfolios. The portfolio performed well, with every asset class generating positive absolute returns over the Fiscal Year. Public Equities and the Diversifying portfolio performed particularly well on an absolute basis, achieving double-digit returns over the year.

Performance can also be measured by comparing returns of other public pension plans, though it is important to remember that different plans have different investment goals, which impact their asset allocations and portfolio structure. SDCERS compares very favorably against its peers over longer time periods – posting risk-adjusted returns in the top 19% of its peer universe of similarly-sized public pension plans over the most recent 10-year period ending June 30, 2026.