University of California Retirement Plan, Oakland, returned a net 17.4% for the fiscal year ended June 30, surpassing its policy benchmark of 17.12%.
During the board of regents' investment committee meeting Wednesday, Jagdeep Singh Bachher, chief investment office and vice president of investments, said the university should pay close attention to the pension fund's management fees moving forward. The $52.1 billion pension fund returned 18.2% gross of fees.
Domestic equity was the top performer with a 25.3% return, followed by opportunistic equity, 25%; private equity, 24.8%; and developed markets equity, 23%; cross-asset class strategy, 15.5%; absolute-return strategies, 14.9%; emerging market equity and private real estate, 13% each; real assets and public real estate, 12.2% each; high-yield bond, 12.1%; emerging market debt, 7.7%; core fixed income, 5.1%; and Treasury inflation-protected securities, 4.4%.
As of June 30, the pension fund had an asset allocation of 24.1% domestic equity, 15.5% developed markets equity, 11% core fixed income, 7.6% emerging markets equity, 7.4% opportunistic equity, 6.6% private equity, 5.7% each absolute return and real estate, 5.5% Treasury inflation-protected securities, 2.9% high-yield bonds, 2.6% cross asset class strategy, 2.4% real assets, 2.3% emerging markets debt and the rest in liquidity.
For the three-, five- and 10-year periods ended June 30, the pension fund returned an annualized 9.6%, 12.7%, 6.9%, respectively, surpassing its benchmarks of 8.8%, 11.8% and 6.5%, respectively.
