Several public pension funds reported returns for the year ended June 30.
The Oregon Public Employees Retirement System, Salem, reported a 13.9% investment return for the year ended June 30, thanks to strong performance by alternative investments that propelled the fund to a record high of $49.5 billion, said Kevin Max, spokesman. The fund's alternative equity portfolio, comprising corporate finance, venture capital and special situations, gained 38.8% for the year ended June 30, while real estate holdings returned 32%. The fund's alternative equity holdings account for 8.9% of the investment portfolio, while real estate represents about 5.8%.
Separately, the Oregon Investment Council, which oversees Oregon's public employees' fund, approved up to $375 million in real estate and private equity investments, Mr. Max said. The fund will commit $75 million to Aetos Capital Asia II, a real estate fund; and $100 million to JP Morgan Asia Opportunity II and up to $200 million to Warburg Pincus Private Equity IX, both private equity funds. Funding for the three investments will come from redemptions from other funds, Mr. Max said.
The Maryland State Retirement and Pension System, Baltimore, reported a return of 9.5% for the fiscal year ended June 30, with total assets up $1.9 billion to $32.1 billion. Domestic equity investments earned 6.9% for the year; international equity, 14%; and real estate, 27%.
"The investment decisions we have made, and the strict adherence to those decisions, continue to produce strong returns," said William Donald Schafer, Maryland state comptroller and chairman of the pension fund's board of trustees.
The Ohio School Employees Retirement System, Columbus, returned 10.5% for its fiscal year ended June 30, beating the plan's custom benchmark, which returned 10.33%, said Julie Graham-Price, a fund spokeswoman. Total plan assets grew to $8.98 billion for the same period, from $8.2 billion the previous year. The plan's asset allocation is 46% domestic equities, 23% fixed income, 18% international equities, 10% real estate and 3% cash and private investments. The strongest performance was from real estate, which returned 22.3%, and international equity, which returned 19.3%.