Chicago Policemen fund returns 4.5% for fiscal year

Chicago Policemen's Annuity & Benefit Fund returned a net 4.5% for the fiscal year ended June 30, showed an investment report obtained by Pensions & Investments.

The $2.5 billion pension fund's fiscal-year return fell short of its policy benchmark return of 6.1%.

For the three, five and 10 years ended June 30, the pension fund returned an annualized net 8.2%, 5.4% and 9%, respectively, compared to the respective benchmark returns of 8.5%, 5.3% and 8.4%.

The pension fund returned a net 7.4% for the fiscal year ended June 30, 2018.

By asset class, private debt had the top net return for this fiscal year ended June 30, at 10.1% (compared with its benchmark return of 5.7%), followed by infrastructure at a net 7.9% (above its benchmark return of 6.5%).

Following those were fixed income at a net 6% (benchmark 7.9%); opportunistic credit, 5.7% (6.4%); domestic equities, 5.5% (9%); private equity, 5.3% (12.7%); real estate, 4.8% (6.8%); global asset allocation 4.5% (6%); international equities, 1.4% (1.3%); and hedge funds, 0.3% (1.2%).

As of June 30, the actual allocation was 24.1% international equities, 21.9% domestic equities, 21.1% fixed income, 5.1% real estate, 5% opportunistic credit, 4.4% global asset allocation, 4% hedge funds, 3.7% private debt, 3.6% cash, 3.2% long/short equity, 3.1% infrastructure and 0.8% private equity.

The target allocation is 22% fixed income; 21% each domestic equities and international equities; 7% real estate; 5% each global asset allocation and private equity; 4% each hedge funds, infrastructure, opportunistic credit and private debt; and 3% long/short equity.