Chicago police fund matches benchmark for the year

The $2.4 billion Chicago Policemen's Annuity and Benefit Fund reported a fiscal year-end return of 0.8%, matching its policy benchmark for period ended June 30, a performance report showed.

By comparison, the fund's net annual return as of the same date a year earlier was 4.5%.

Annualized net returns over longer periods were 4.2% for the three-year period ended June 20 (benchmark, 5%); five-years, 5% (5.2%); and 10-years,7.6% (7.3%).

The defined benefit plan's annualized return since in inception (Jan. 1, 1984) was 8.3%. The report did not provide a benchmark return for this period.

The fund's asset allocation as of June 30 was equities, 50.4%; fixed income, 22.3%; private equity, 1.1%; infrastructure, 3%; real estate, 5.6%; hedge funds, 6.5%; global asset allocation,4.5%; opportunistic credit, 2.6%; private debt, 3.4%; and cash, 0.6%.

Net returns by asset class for the combined DB plan fund in the year ended June 30 were led by the 6.9% return of the DB plan's $26 million private equity portfolio (benchmark, -5.5%).

The fund's other asset class net returns in the fiscal year ended June were:

• The $134 million real estate portfolio returned 5.4% (benchmark, 5.3%).
• The $537 million fixed-income portfolio returned 5% (8.7%).
• The $71 million infrastructure allocation produced a 1.8% return (2.7%).
• The $157 million hedge fund portfolio return was zero (0.5%).
• The equity portfolio totaling $1.2 billion was down 0.8% (2.1%).
• The $106 million global asset allocation portfolio was down 2.3% (3.7%).
• Private debt investments totaling $81 million were down 2.5% (4.6%).
• The $61 million opportunistic credit portfolio was down 4.5% (-1%).