Hartford HealthCare, Hartford, Conn., returned 12% for the fiscal year ended June 30 for its combined pension fund and endowment portfolio, said David J. Holmgren, chief investment officer.
The return easily topped its benchmark policy of 7.4% for the year.
Its annualized return for the three years ended June 30 was 8.2%, vs. 5.7% for its policy. Its annualized return for the five years ending June 30 was 8.9%, above its policy return of 6.7%. It returned 15.9% in the previous fiscal year.
By asset class, growth assets delivered 13.4% for the fiscal year, vs. 10.7% for its policy; risk-reduction assets, 7.7% vs. -0.4% policy; and inflation protected/economic hedged assets, 11.5% vs. 11% policy.
Its current target weight is 50% growth assets, 35% risk reduction assets and 15% inflation-protected/economic hedged assets.
The growth portfolio consists of global equity, emerging and frontier markets equity and private equity; risk reduction has hedge funds and diversified credit; and inflation-protected/economic hedged portfolio is composed of U.S. real estate, global infrastructure, natural resources and asset-backed income producing strategies such as shipping and aircraft. Mercer advises on the growth portfolio; Aksia, risk reduction; and Pavilion Alternatives Group, hedged portfolio.
Hartford HealthCare has $3.2 billion in pension and endowment assets.