Pennsylvania Public School Employees' Retirement System, Harrisburg, returned a net 10.74% for the year ended Dec. 31, surpassing its 8.8% benchmark return, confirmed Evelyn Williams, spokeswoman for the $51.3 billion pension plan.
PennPSERS' three- and five-year annualized returns were 5.75% and 7.43%, respectively. Longer term, the pension fund returned an annualized 7.85% and 8.39% for the 25- and 30-year periods ended Dec. 31, respectively. PennPSERS has an assumed rate of return of 7.25%.
By asset class, the fund posted a net return of 24.62% for master limited partnerships; 16.49% for U.S. equities; 14.74%, commodities; 11.66%, infrastructure; 11.14%, risk parity; 10.65%, fixed income; 9.63%, private equity; 9.56%, real estate; 5.15%, non-U.S. equities; and 3.97%, absolute return.
In a news release, James H. Grossman Jr., chief investment officer, confirmed that “all major asset classes … generated positive returns.”