Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Investments topic
No spam. Unsubscribe anytime.
SDRS investment staff report roughly 6%–6.5% year-to-date returns, low equity exposure
Summary
Investment staff reported estimated returns through the quarter of about 6%–6.5%, said the fund remains conservatively positioned with equity-like risk under 50% versus a 70% benchmark, and described recent contributors including energy and some semiconductor equipment names.
Investment staff briefed trustees on year-to-date performance and strategy, highlighting conservative positioning and sector effects.
Darcy opened the update and estimated SDRS returns through the close of the prior day at about 6%–6.5% when factoring partnership performance. She said the fund remains conservatively positioned with a little under 50% equity-like risk versus a 70% benchmark, and that the team has been cautious on high-yield exposures and duration.
Jan Zeke said global equities have outperformed relative to benchmark year-to-date by roughly 400 basis points, and highlighted energy and certain semiconductor capital-equipment names as recent contributors. Jared Edund reviewed small- and mid-cap performance, noting about a 6.3% outperformance of its benchmark, higher volatility in small caps, and participation of some small-cap tech names in the AI-related rally.
Trustees asked about trimming energy exposure after recent strength; staff said they rebalance gradually and monitor intraday triggers, have executed smaller adjustments to keep allocations within band limits, but had not yet hit a primary equity trigger.
The investment item closed with trustees acknowledging market volatility and thanking staff for the update.
