The City of Fresno Retirement Systems announced a 10.37% net return in fiscal 2024. Assets of the Fresno, California-based fund grew to $3.975 billion as of June 30, and, like many other pension funds, strong stock returns contributed to a significant portion of the fund’s growth.
The fund’s fiscal year returns outperformed its policy benchmark of 9.89% and its actuarial assumed rate of return of 3.62%.
The fund holds 24.6% of its assets in domestic equities and 20% in international equities. The fund’s total equities portfolio, which includes a 7.2% allocation to private equity, returned 15.8%. Domestic stocks returned 23.2%, international stocks returned 10.2% and private equity returned 8.7%.
The fund’s rates and credit portfolio, which comprises 24.7% of the fund’s assets, grew 9.9% in the fiscal year. Core fixed income, making up 11.6% of the fund’s assets, grew 4.6%, while private credit, which comprises 13.1% of the total portfolio, returned 14.9%.
CFRS’ real assets portfolio, which makes up 21% of the fund, lost 0.9% in the fiscal year, primarily due to negative returns in core real estate. That asset class, which comprises 9.7% of the total portfolio, returned negative 7.9%. Private real estate, which comprises 5.2% of assets, returned 3.6%, and infrastructure, with a 6% weight, returned 9.8%.
The fund’s multi-asset/alt credit portfolio, comprising 1.6% of the portfolio, returned 10.3%. Finally, the fund keeps 1% of its portfolio in cash, which returned 5.5% in the fiscal year.
The City of Fresno Retirement Systems manages the assets of the Employees Retirement System and the Fire & Police Retirement System. Combined, the systems have 3835 members and 3450 retirees.
Related Stories:
San Bernardino County Pension Announces Preliminary 9.3% Return in Fiscal 2024
CalSTRS Achieves 8.4% Return in 2024 Fiscal Year
Mass PRIM Achieves 9.9% Return in Fiscal 2024
Tags: California, City of Fresno Employees Retirement System, City of Fresno Retirement Systems, Fresno, Pensions