Minnesota State Board of Investment's combined funds assets rose 4% in the quarter ended Sept. 30, to $54.2 billion, Mansco Perry III, executive director, told members of the board's investment advisory committee Tuesday.
The St. Paul-based board oversees $68.6 billion; the combined funds are state defined benefit assets managed by the board.
The investment return as of Sept. 30 was 5.1% for the quarter, 14.9% for 12 months, and an annualized 11.8% for three years, 7% for five years and 8.4% for 10 years. The board's alternatives portfolio, at 20% of plan assets, returned 2.1% for the quarter, 13.3% for the year, an annualized 13.2% for three years, 6.1% for five years and 15.5% for 10 years.
Separately, Mr. Perry, in his first committee meeting since being appointed executive director in September, suggested that the committee in the near future discuss what to do with the board's $12 billion fixed-income portfolio, which he said was now “basically” all in the Barclays Capital Aggregate.
“At some point, rates are going to go up, and there may be more risk than what we were led to believe,” Mr. Perry said. “Do we want to rethink how we look at bonds? … We might be in for more of a roller-coaster ride than we want.”