Nashville (Tenn.) & Davidson County Metropolitan Government Employee Benefit Trust Fund returned 14.22% on investments in the fiscal year ended June 30, confirmed Fadi BouSamra, chief investment officer.
The $2.4 billion pension fund’s benchmark for the fiscal year was 10.99%, and the actuarial expected rate of return is 7.5%.
Alternative fixed income performed the best of all the pension fund’s asset classes, with a fiscal year return of 27.23%, followed by domestic equities at 22.94% and international equities at 14.83%.
Equity long/short returned 13.77%, followed by real assets at 9.8%, private equity at 9.37% and traditional fixed income at 2.22%.
The pension fund’s current actual asset allocation is 31% domestic equities, 18% traditional fixed income, 15% international equities, 11% real assets, 10% equity long/short, 9% alternative fixed income and 6% private equity.
The current target allocation is 15% each, traditional fixed income and alternative fixed income; 14.5% domestic equities; 13% international equities; 12.5% real assets; and 10% each, equity long/short, private equity and global equities.