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Pension Funds

Missouri Education Pension Trust returns net 8.7% for fiscal year, above its benchmark

Missouri Education Pension Trust, Jefferson City, returned a gross 8.9% for the fiscal year ended June 30, said Craig Husting, chief investment officer, in an email.

The overall return net of fees was 8.7%, topping its 7.4% benchmark. The annualized net returns for the three, five and 10 years ended June 30 were 7.45%, 8.59% and 6.65% respectively, outperforming their respective benchmarks of 6.69%, 7.74% and 6.24%.

The trust returned a net 12.3% for the fiscal year ended June 30, 2017.

By asset class, the best performers were private equity, which returned 16.68%, 190 basis points above its policy benchmark; and domestic equities, which returned 14.05%, 73 basis points below its policy benchmark. Other asset class returns were private credit, which returned 9.48% (well above its policy benchmark of 2.53%); international equities, 8.32% (104 basis points above its policy benchmark); real estate, 8.26% (59 basis points above its benchmark); hedged assets, 6.3% (102 basis points above the benchmark); U.S. Treasury inflation-protected securities, 1.58% (13 basis points above); cash and cash equivalents, 0.97% (no benchmark listed); credit, 0.64% (100 basis points above); and U.S. Treasuries, -0.55% (10 basis points above).

Mr. Husting said that hedged assets, private credit, private equity and real estate returns are all returns net of fees, carries and expenses, while all other assets are partially net of fees and expenses.

As of June 30, the actual allocation was 29.5% domestic equities, 16.9% international equities, 12.2% U.S. Treasuries, 11.9% hedged assets, 9.5% private equity, 7.5% real estate, 5.4% credit, 3.2% U.S. TIPS, 3.1% cash and cash equivalents, and 0.8% private credit.

The Missouri Education Pension Trust consists of the combined $43.7 billion in assets of the Public School Retirement System and Education Employee Retirement System.