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HomeMy WebLinkAboutFresno County Employees' Retirement Association - Public Financial ReportRetfrement Board Nathan Magsig, MBA MS, Chair Stanley L. McDivitt, Vice Chair John Adams Laura Basua Rauden H. Coburn, III, DDS Oscar J. Garcia, CPA Steven Jolly, AIF John Robinson Riley Talford Douglas Papagni, Alternate A Message to Members This Popular Annual Financial Report (PAFR) summarizes the informatfon contained in the Annual Comprehensive Financial Report that provides financial informatfon on FCERA’s actfvitfes. This PAFR is presented in conformity with Generally Accepted Accountfng Principles (GAAP). The more detailed Annual Comprehensive Financial Report is available on FCERA’s website at www.fresnocountyretfrement.org or from the FCERA Administratfve Office for a small copy fee. Meetfngs of the Board of Retfrement are normally held on the first and third Wednesday of each month at 8:30 a.m. Members of the Retfrement Associatfon and the public are invited to attend these meetfngs. As a member of the Retfrement Associatfon, you are encouraged to contact the Retfrement Office regarding these summary financial statements or to obtain other informatfon concerning the Retfrement System. Members are also encouraged to visit our website at www.fresnocountyretfrement.org or on the County's Intranet by selectfng Retfrement Associatfon under the Department Sites link for more informatfon. POPULAR ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30 2021 Nathan Magsig, MBA MS, Chair Board of Retirement Donald C. Kendig, CPA Retirement Administrator 7772 N. Palm Ave | Fresno, CA 93711 p. (559) 457-0681 | f. (559) 457-0318 FresnoCountyRetfrement.org A Pension Trust Fund for the County of Fresno and Partfcipatfng Employers Fresno, California Membership Highlights Total membership in the Associatfon increased by 1.00% to 19,923. The total number of actfve members decreased by 3.0% to 7,638, retfred membership increased by 1.8% to 7,985, and terminated membership increased by 7.1% to 4,300. Financial Highlights FCERA’s investment portiolio consists of equitfes, fixed income, real estate, private equity, private credit, infrastructure, cash and cash equivalents. The average rate of return on the market value basis of the investment portiolio over the past fiscal year was 25.6%, net of fees. FCERA’s past performance over three, five, and ten-year periods ending June 30, 2021 respectfvely, were: 10.2%, 9.6% and 7.5%, net of fees. During the fiscal year, benefit payments to retfrees and beneficiaries totaled $308 million and refunds to terminated plan members totaled $2.7 million. Administratfve expenses totaled $6.1 million for the year, which amounts to 0.10% of net positfon. As of June 30, 2021, Fresno County Employees’ Retfrement Associatfon (FCERA) has total assets of $6.6 billion. After accountfng for current liabilitfes of $354.5 million, FCERA has a total net positfon restricted for pension benefits of $6.3 billion which increased from June 30, 2020 at $4.9 billion. The net positfon restricted for pension benefits is available to meet FCERA’s ongoing obligatfon to plan partfcipants and their beneficiaries. Contributfons of $315.6 million, when combined with net investment income of $1.4 billion, generated total additfons of $1.7 billion. Total deductfons including benefits paid, refunded contributfons and administratfve expenses amounted to $316.8 million which resulted in an increase in net positfon of $1.3 billion. 2 3 Asset Allocatfon as of June 30, 2021 (Total Fair Value of Cash and Investments $6,269,743) Investment Performance The chart to the right reflects returns, net of fees, for the one-year periods ended June 30th. FCERA’s policy index is composed of the MSCI USA, Fixed Income Custom Benchmark, MSCI ACWI ex US, Russell 2000, Bloomberg US Corp. High Yield, Private Equity Neutralized, Private Credit Neutralized, and NCREIF ODCE Net. For more informatfon about the Associatfon’s investment policy, strategy, and returns, please visit www.fresnocountyretfrement.org. Funded Status FCERA’s funding status is determined based on the 6/30/20 actuarial valuatfon. As of June 30, 2020 the funded ratfo on a valuatfon value of assets basis has increased from 81.7% to 82.7%. This ratfo indicates that FCERA has approximately $0.83 cents of assets for each $1.00 of liabilitfes. The County of Fresno and partfcipatfng agencies contribute to the retfrement plan based upon actuarially determined contributfon rates adopted by the Board of Retfrement. More informatfon about FCERA’s funded status can be found in the introductfon sectfon of the Annual Comprehensive Financial Report. Year * Complete list of portiolio holdings available upon request * * Presorted Standard U.S. Postage PAID Fresno, CA Permit No. #### Additfonal informatfon regarding membership and retfrement can be found in the Member Handbook, which can be viewed on FCERA’s website at FresnoCountyRetfrement.org or obtained from the FCERA Administratfve Office. More in depth informatfon regarding investments and FCERA’s financial status can be found in the Annual Comprehensive Financial Report. 7772 N. Palm Ave. Fresno, CA 93711 (559) 457-0681 p. (559) 457-0318 f. FresnoCountyRetfrement.org POPULAR ANNUAL FINANCIAL REPORT For the Fiscal Year Ended June 30 2021 PAFR Award The Government Finance Officers Associatfon (GFOA) awarded FCERA with the Popular Annual Financial Reportfng Award (PAFR). The PAFR provides FCERA’s membership with condensed and concise informatfon in an easier to read format than presented in the Annual Comprehensive Financial Report. FCERA received this honor on its submission for the award for the fiscal year ended June 30, 2020.