North Carolina Retirement Systems, Raleigh, returned 12.28% in 2013, led by double-digit returns in its global equity portfolio.
The $86.03 billion pension fund returned 4.16% for the fourth quarter. Assets at year-end 2012 were $78 billion.
Global equities gained 26.24% in 2013, and 7.6% in the fourth quarter. Credit gained 16.56% last year, while real estate gained 11.56% and private equity gained 11.72%.
The fixed-income portfolio returned -3.49% for the year. Concern over the fixed-income portfolio's drag on overall performance prompted state Treasurer Janet Cowell, the sole trustee, to get approval from the General Assembly to gradually move out of bonds and into less traditional assets such as real estate and credit strategies.
The pension fund's investment advisory committee will meet Wednesday to review the results of a new asset-liability study and discuss ways to incrementally change the pension fund's asset allocation, said Schorr Johnson, spokesman for Ms. Cowell.
The current allocation is roughly 48.2% equities, 30.7% fixed income, 8.3% real estate, 4.7% credit strategies, 4.5% alternatives, 3.1% inflation and 0.5% cash.