Annualized returns for the three, five and 10 years ended June 30 were not provided.
The pension fund had returned a net 32.2% for the fiscal year ended June 30, 2021.
The pension fund's latest fiscal-year returns reflect a challenging return environment for public equities and fixed income during the past year. For the year ended June 30, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -13.9% and -10.3%, respectively, in sharp contrast to returns of 44.2% and 4.6% for the year ended June 30, 2021.
The pension fund benefited from its significant exposure to alternative investments, which led all asset classes for the fiscal year ended June 30 with a preliminary net return of 21.5% for the year ended June 30, above its benchmark return of 20.1%.
HPOPS' alternative investments asset class consists of private equity, real estate and hedge funds.
Credit strategies posted the next highest return at a preliminary net 1.3%, well above its benchmark return of -12.4%. The pension fund's credit strategies asset class consists of high-yield bonds and less liquid funds investing in distressed and structured credit, according to its website.
Also for the fiscal year ended June 30, fixed income returned a preliminary net -5.9% (above its benchmark of -10.3%), followed by domestic equities at -10.8% (-13.9%) and international equities at -18.5% (-19.4%).
As of June 30, the actual allocation was 35.2% alternative investments, 29.9% domestic equities, 13.4% international equities, 10.1% credit strategies, 9.8% fixed income and the rest in cash.