Florida Retirement System, Tallahassee, returned a preliminary net 0.61% in the fiscal year ended June 30, 71 basis points above its benchmark, said a news release from the Florida State Board of Administration, which oversees the money management of the $141.4 billion pension fund.
Real estate led all asset classes, with a net return of 12.66%, followed by private equity at 7.36% and fixed income, 4.35%. Following those were strategic investments at 1.83%; cash and cash equivalents, 0.33%; and global equity at -3.09%.
“The positive net returns show the value of diversification, our success in controlling costs, and the prudence and patience of sticking to the fund's long-term investment plan in a challenging year,” said Ash Williams, SBA's executive director and chief investment officer, in the news release. “This year's return results in the second longest streak of positive returns for the fund in the past four decades.”
The pension fund's annualized net returns for the three-, five- and 10-year periods ended June 30 were 6.98%, 6.79% and 5.86%, respectively. The fund, in all three periods, topped the index returns.
Target allocations are 53% global equity, 18% fixed income, 12% strategic investments, 10% real estate, 6% private equity, and 1% cash and cash equivalents.
As of June 30, actual allocations were 56.3% global equity, 18.9% fixed income, 9.4% real estate, 8.2% strategic investments, 6.5% private equity and 0.8% cash and cash equivalents.
