Investment Performance Update

As SCERS approaches the close of the fiscal year on June 30, the retirement system remains on track to meet its 6.75%
investment return assumption. As of March 31, 2026, the portfolio had returned approximately 7%, positioning SCERS
well despite a period marked by market volatility, geopolitical tensions, fluctuating energy prices, and persistent inflation concerns.

Achieving the investment return target is important because it helps reduce pressure on future employer contribution rates and supports SCERS’ continued progress toward full funding. Strong investment performance today strengthens the system’s ability to provide secure retirement benefits for decades to come.

“SCERS invests with a long-term perspective,” said Chief Investment Officer Steve Davis. “While markets will always experience periods of uncertainty, our diversified portfolio and disciplined investment approach are designed to help us navigate short-term volatility while remaining focused on meeting our long-term obligations to members and employers.”