Sure! Here’s a summary of the key points regarding SERS’ investment performance:
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Net Investment Return: For the fiscal year ending June 30, 2026, SERS achieved a net investment return of 16.37%, exceeding its Total Fund benchmark by 2.84% and more than doubling the assumed return rate of 7.00%.
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Portfolio Performance: All portfolios within the Total Fund had positive returns:
- Global Equities: 29.08%
- Opportunistic & Tactical: 10.63%
- Global Infrastructure: 10.17%
- Global Private Equity: 9.46%
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Long-term Returns: Over 3, 5, and 10-year periods, SERS’ net-of-fees returns are above the 7.00% target:
- 3-Year: 12.36%
- 5-Year: 8.68%
- 10-Year: 10.05%
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Smoothing Process: SERS employs a 4-year smoothing method to manage gains and losses relative to the assumed rate. Due to recent strong performance, unrealized gains can potentially enhance the System’s funded status, which is currently at nearly 80%.
This information highlights SERS’ strong investment performance and strategic management of its funds.
