North Carolina Retirement Systems, Raleigh, on Friday reported a 4.46% return for the quarter ended Sept. 30, 18 basis points higher than its overall benchmark, with gains in all asset classes.
Assets grew to $77.1 billion, up 3.5% for the fiscal year ended June 30.
The quarter's best-performing asset class was global equity, with a 6.91% return. The inflation portfolio returned 6.09%; credit, 3.62%; fixed income, 2.73%; and real estate, 1.45%. Alternatives, which are largely private equity, returned 0.58%.
The current asset allocation is 44.2% equities, 36% fixed income, 7.7% real estate, 4.9% alternatives, 4.1% credit and 3.1% inflation.
State Treasurer Janet Cowell, the pension fund's sole trustee, noted in a news release that while the positive returns were encouraging, “the next couple years hold challenges that will keep returns modest.”