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Pension Funds

Pennsylvania Public School Employees returns 10.14% for fiscal year

Pennsylvania Public School Employees' Retirement System, Harrisburg, returned a net 10.14% net of fees for the fiscal year ended June 30, confirmed Evelyn Williams, spokeswoman for the $53.5 billion plan.

Over the long term, PennSERS returned 4.76%, 7.35%, 3.8% and 7.24% for the three, five, 10 and 15 years ended June 30, respectively. The pension fund returned a net 1.29% in the fiscal year ended June 30, 2016. The system returned 1.29% net of fees in the fiscal year ended June 30, 2016.

"Active management was a significant contributor to performance, adding over $1.7 billion relative to the board-approved policy benchmark," said James Grossman Jr., chief investment officer, in a news release.

Mr. Grossman added: "Active management added value in most asset classes this past fiscal year relative to passively managed alternatives, as 13 of 15 asset classes outperformed their policy benchmarks."

Performance by asset class for the year ended June 30 was global equities, 22.57%; U.S. equities, 19.32%; private markets, 14.36%; infrastructure, 10.86%; hedge funds, 9%; real estate, 8.38%; risk parity, 7.17%; fixed income, 5.22%, master limited partnerships, 4.19%; and commodities, -3.48%.

The plan's target asset allocation is 35% equities, 33% fixed income, 26% real assets, 10% each to risk parity and hedge funds, 3% cash, and -17% to financing through leverage.