Florida Retirement System, Tallahassee, returned a net 13.77% for the fiscal year ended June 30, 81 basis points above its primary benchmark, said John Kuczwanski, spokesman for Florida State Board of Administration, which oversees the money management of the $153.6 billion pension fund.
Global equity was the best-performing asset class, with a net return of 19.6% for the fiscal year ended June 30, above its primary benchmark of 19.06%, followed by private equity, at 18.27%, below its 22.06% benchmark. Other asset class returns were: strategic investments at 9.75%, above its 6.6% benchmark; real estate at 8.73%, above its 6.87% benchmark; cash and cash equivalents at 0.62%, above its 0.54% benchmark; and fixed income at 0.37%, above its -0.16% benchmark. The strategic investments asset class includes hedge funds, timberland and opportunistic strategies.
The pension fund returned an annualized net 5.85%, 9.51%, and 5.46% for the three, five and 10 years ended June 30, respectively, above their respective benchmarks of 4.88%, 8.62%, and 4.83%. The one-year net return for the fiscal year ended June 30, 2016, was 0.61%.
As of June 30, the actual allocation was 57.8% global equity, 17.9% fixed income, 8.9% real estate, 8.2% strategic investments, 6.4% private equity and 0.8% cash and cash equivalents.