Florida Retirement System, Tallahassee, returned a net 8.98% for the fiscal year ended June 30, 76 basis points above its primary benchmark, said John Kuczwanski, spokesman for Florida State Board of Administration, which oversees the money management of the $160.4 billion pension fund.
The net return for the previous fiscal year, ended June 30, 2017, was 13.77%.
The pension fund returned an annualized net 7.62%, 8.69%, 6.85% and 6.35% for the three, five, 10 and 20 years ended June 30, respectively, above their respective benchmarks of 6.89%, 7.88%, 6.13%, and 5.76%.
By asset class, private equity was the best performer, returning a net 17.3% for the fiscal year ended June 30, above its primary benchmark of 14.11%. Global equities came in second, at 11.55%, above its 11.11% benchmark. Other asset class returns were strategic investments — which includes hedge funds, timberland and opportunistic strategies — at 7.76%, above its 6.58% benchmark; real estate at 7.21%, just slightly above its 7.2% benchmark; cash and cash equivalents at 1.42%, above its 1.29% benchmark; and fixed income at -0.16%, above its -0.32% benchmark.
As of June 30, the actual allocation was 56.1% global equity, 18.7% fixed income, 8.9% real estate, 8.1% strategic investments, 7.1% private equity, and 1.1% cash and cash equivalents.