Missouri State Employees' Retirement System, Jefferson City, returned 12.6% on its investments for the year ended June 30, bringing the pension fund's total assets to roughly $6.5 billion, said Chris Rackers, manager of investment policy and communications. The plan uses a market-based policy benchmark of 12.3%. MoSERS' public equity portfolio posted a return of 12.3% for the year, and public debt, 7.8%. The fund's alternatives portfolio returned 21.3%.
MoSERS posted a 17.1% return on investments for the previous year, when it used a market-based policy benchmark of 16.7%, Mr. Rackers said.
Gary Findlay, executive director, said in a statement that MoSERS "has generated returns in excess of our portfolio benchmark with less volatility" for the fifth straight year.
Separately, Houston Firefighters' Relief and Retirement Fund returned 19.34% the year ended June 30, helped by strong gains in fixed income, international equities, energy and real estate, according to Christopher Gonzales, CIO. The $2.2 billion fund's 35% allocation to fixed income performed particularly well, he said, with long-bond and high-yield portfolios each returning about 17%. Those two allocations make up about 70% of the fund's overall fixed-income portfolio.
The fund has $120 million in two separate accounts invested in energy sector funds, each of which returned nearly 50% for the year, while the fund's roughly 20% allocation to emerging market equities returned around 36%, Mr. Gonzales said.
"It was about our exposure," Mr. Gonzales said. "We were in the same places as everyone else." He did note, however, that the fund's exposure to domestic equities was about 20% of assets, compared with the more typical 40%.