Published: June 30, 2012
Although both fiscal and monetary policies remained very accommodative around the globe in Fiscal Year 2012, investment results were dominated by the mixed themes of uncertainty and recovery. Domestic uncertainty continues to be in the forefront as investors worry over persistently high unemployment, low levels of economic growth and an unknown political environment that result in the consumer limiting their spending. The international markets are dealing with a similar set of issues as growth rates in the emerging markets (more specifically, China) are being reduced while much of the periphery of western Europe (Spain, Italy, Greece, etc.) is seeing negative growth as they struggle with the potential political, social and economic impacts of austerity. In this environment, investors remain cautious. With this perspective, the System continues to follow its policies and procedures with respect to the long-term asset allocation and takes a long-term view to manage through both difficult and prosperous times by employing a disciplined approach to the investment of the System’s assets.
For the Fiscal Year ended June 30, 2012, the San Francisco Employees’ Retirement System (the “System”) returned +1.67%.
During the fiscal year, staff and consultants reviewed the Fund’s sub-asset class allocation in the Public Market (Equities and Fixed Income) segments and made several minor adjustments. Staff also evaluated and updated Investment Plans for Private Markets (Alternatives and Real Estate).