Louisiana State Employees' Retirement System, Baton Rouge, returned a gross 18.8% in the fiscal year ended June 30, said Robert W. Beale, chief investment officer, in an e-mail.
The $11 billion pension fund exceeded its 17.7% policy benchmark by 110 basis points.
Total equities returned 23.4%, alternatives returned 14.6% and total fixed income gained 9.7% in the fiscal year ended June 30, Mr. Beale said.
“Obviously, the strong equity returns are what drove performance,” Mr. Beale said. “We believe that our current allocation works well over time, we're diversified globally, and have a firm commitment to private markets investing and emerging market investments.”
As of June 30, the actual allocation was 15% each domestic large-cap equities and international large-cap equities; 13% private equity; 12% emerging markets equities; 8% each absolute return and domestic small-cap equities; 7% risk parity; 4% each domestic core fixed income, domestic high-yield fixed income and domestic midcap equities; 3% international small-cap equities; 2% each emerging markets debt, opportunistic credit and real assets; and 1% cash equivalents.
The target allocation is 15% each domestic large-cap equities and international large-cap equities; 13% private equity; 12% emerging markets equities; 8% each absolute return and domestic small-cap equities; 7% risk parity; 4% each domestic core fixed income, domestic high-yield fixed income and domestic midcap equities; 3% each international small-cap equities and real assets; and 2% each emerging markets debt and opportunistic credit.
