SERS’ investment team reported a 16.37% net investment return for the fiscal year ended June 30, 2026. This was 2.84% above the Total Fund benchmark, meaning investment management added value beyond what was expected. This return was more than double SERS’ assumed rate of investment return of 7.00%.
All of the individual portfolios of the Total Fund registered positive returns for the fiscal year led by Global Equities at 29.08%, Opportunistic & Tactical at 10.63%, Global Infrastructure at 10.17%, and Global Private Equity at 9.46%.
Over the 3-, 5-, and 10-year periods, SERS’ Total Fund net-of-fees returns are all above the 7.00% assumed rate at 12.36%, 8.68%, and 10.05%, respectively.
SERS uses a 4-year smoothing process in which gains and losses above and below the 7.00% assumed rate are divided evenly and gradually realized over a 4-year period. Because of the positive investment performance over the last few years, SERS has unrealized gains that can be used in the next three years to offset less-than-expected investment returns and/or improve the System’s funded status, which is nearly 80%.