Arkansas Public Employees Retirement System, Little Rock, returned a gross 10.25% for the fiscal year ended June 30, above its benchmark of 8.4%, confirmed Carlos Borromeo, chief investment officer for the $8.9 billion pension fund, in an email.
By asset class, domestic equity returned 16.27%, followed by real assets, 11.34%; international equity, 7.22%; diversified strategies, 6.43%; and fixed income, 0.79%.
The pension fund has an asset allocation of 40% domestic equity, 25% international equity, 15% each fixed income and real assets, and 5% diversified strategies. Mr. Borromeo described the diversified strategies asset class as "hedge fund light."
For the three, five and seven years ended June 30, the pension fund returned an annualized 7.49%, 8.82% and 8.42%, respectively, topping its benchmarks of 7.06%, 8.16% and 8.03%.
For the fiscal year June 30, 2017, the pension fund returned a gross 12.3%.