Baltimore City Fire & Police Employees posts 6.9% fiscal-year return

Baltimore City Fire & Police Employees' Retirement System posted a preliminary net return of 6.9% for the fiscal year ended June 30, below its policy benchmark index return of 7.2% for the period, according to an investment report posted on the system's website.

For the three, five and 10 years ended June 30, the $3.1 billion pension fund returned an annualized 8.2%, 5.9% and 6.5%, below their respective benchmarks of 9.9%, 7.3% and 7.3%.

The pension fund had returned -7.7% for the fiscal year ended June 30, 2022.

In a reversal of the previous year, equities led the way for BCFPERS in the latest fiscal year. International equities was the top-performing asset class, with a return of 15.6% for the year ended June 30 (above its 12.7% benchmark), followed by domestic equities at 14.9% (below its 19% benchmark). In fiscal year 2022, international equities had posted a -26.2% return and domestic equities came in at -13.3%.

Private real estate returned 11.3% in the fiscal year (no benchmark provided); followed by private debt, 2.5% (no benchmark); hedge funds, 5.2% (3.7%); fixed income, 0.9% (zero); real estate, -2.5% (-4.7%); and private equity, -7.8% (no benchmark).

As of June 30, the actual allocation was 27.3% domestic equities, 20.4% international equities, 14.7% fixed income, 12.3% private equity, 10.1% real estate, 5.9% hedge funds, 5.1% real assets, 3.5% private debt and the rest in cash.