Holdings of the 100 largest U.S. public-employee retirement systems rose 6.8% for the 12 months through June, the first fiscal-year gain since 2007, a U.S. Census Bureau report released Wednesday shows.
State and local government funds held a combined $2.35 trillion as of June 30, up from $2.2 trillion a year earlier. They remain below their peak value of $2.93 trillion at the end of 2007, the Census Bureau said in a report released on its website.
Benefits paid from the funds, which account for about 89% of financial activity among all public retirement funds, totaled about $176 billion, a 7.8% increase from a year earlier, according to the report.
The funds lost a total of $58.6 billion on their investments during the second quarter, the most since the final three months of 2008, according to the report.
Domestic corporate stocks performed worst of all asset classes during the quarter, losing 13.6% from the prior three months, according to the report. Mortgages, which gained 5.5%, and federal government securities, with a 1.7% gain, were the only asset classes to post gains, according to the Census Bureau.
U.S. stocks were the largest holdings among the funds, composing about 31% of assets, the report said.
Of the 50 state retirement systems, fewer than half had assets to pay for 80% of promised benefits in their 2009 fiscal years, according to data compiled by Bloomberg.