The Sacramento County Employees’ Retirement System (SCERS) announced a preliminary total fund return of 10.1%, gross of investment management fees, for the fiscal year ending June 30, 2018.  Over the last 3 and 5 years, the SCERS’ gross annualized return was 7.6% and 8.3%, respectively.  Though SCERS’ returns have come in above the actuarial return of 7.0%, we remain cautious about future expectations.  Capital market assumptions continue to point toward reduced returns going forward, as demonstrated by periods of increased market volatility in 2018.