Alaska's 2 largest DB plans net 27.6% for fiscal year

Alaska's two largest defined benefit plans each reported net returns of 27.6% for the fiscal year ended June 30.

The Alaska Public Employees' Retirement System's $20.7 billion DB plan and the Alaska Teachers' Retirement System's $10 billion DB plan disclosed the returns in an investment report posted on the state's Department of Revenue website.

Both one-year returns exceeded their shared custom benchmark index return of 25%.

For the three and five years ended June 30, both DB plans returned an annualized net 12.1% and 11.9%, respectively, above the benchmarks of 11.4% and 11.1%.

The plans returned a net 3.8% for the fiscal year ended June 30, 2020.

For the most recent fiscal year, both plans' best-performing asset class was private equity, which returned a net 50.7% (above its 36.8% benchmark) for the year ended June 30, followed by broad domestic equities, which returned a net 42.7% (below its 44.1% benchmark); international equities at 38.5% (37.2% benchmark); opportunistic strategies, 23.9% (23.2% benchmark); real assets, 9.9% (4.6% percent benchmark); and fixed income, 2.2% (-0.3% benchmark).

The plans share a common target allocation of 27% broad domestic equities, 21% fixed income, 18% international equities, 14% each private equity and real assets, and 6% opportunistic strategies.

Actual allocations as of June 30 were not available.