Los Angeles Water & Power Employees' Retirement Plan earned a net return of 8.97% for its fiscal year ended June 30, topping its benchmark of 8.39%, according to documents posted on the $14.4 billion plan's website.
The pension fund earned a 12.7% net return in the prior fiscal year, meeting its benchmark.
The pension fund's net return was 7.45% for the three years, compared to its 7.3% benchmark; 8.64% vs. 8.4% for the five years; and 6.83% vs 6.8% for the 10 years ended June 30.
The best-performing asset class in the one-year period was domestic equities, which earned 16.48% net of fees, compared with its 14.78% benchmark. Private equity provided a 12.67% internal rate of return, underperforming its benchmark of 17.19%; international equities returned 7.86% compared to its 7.75% benchmark; real estate earned 10.53%, outperforming its 7.66% benchmark; real return was 4.99% underperforming its 5.84% benchmark; hedge funds returned 3.08% vs. 4.31%; cash provided 2.13% vs 1.36%; and fixed income earned 0.73% vs. 0.51%.
The pension fund's target asset allocation is 33% domestic equities, 26% fixed income, 19% international equities, 6% real estate, 5% hedge funds, 5% real return, 5% private equity and 1% cash.