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Pension Funds

Missouri State Employees posts 7.4% return, topping benchmark

Missouri State Employees' Retirement System, Jefferson City, returned a preliminary net 7.4% for the fiscal year ended June 30, pension fund spokeswoman Candy Smith said.

The $8.2 billion pension fund was well ahead of its 4.8% benchmark for the fiscal year. For the three, five and 10 years ended June 30, MOSERS returned an annualized net 3.7%, 5.3% and 5%, respectively, compared to the respective benchmarks of 4.6%, 5.7% and 4.8%. For the fiscal year ended June 30, 2017, the pension fund returned a net 3.52%, exceeding its policy benchmark of 1.64%.

The best-performing asset class for the fiscal year ended June 30 was beta balanced commodities, which returned a net 14.8%, below its policy benchmark of 16.9%, followed by opportunistic global equities, which returned a net 11.9%, above its policy benchmark of 10.2%. Other asset class returns were: alternative betas, a net 2.8%, above its policy benchmark of -6.5%; beta balanced inflation-indexed bonds, zero, below its policy benchmark of 0.5%; and beta balanced nominal bonds, which returned a net -1.3%, equal to its policy benchmark.

As of June 30, the actual asset allocation was 25% opportunistic global equities, 24% nominal bonds, 22% inflation-indexed bonds, 18% alternative betas and 11% commodities.