Indiana Public Retirement sees net 2.6% return for fiscal year

Indiana Public Retirement System, Indianapolis, returned a net 2.6% for the fiscal year ended June 30, according to an investment report included in materials for its board meeting Friday.

The net return of the system's $30.7 billion defined benefit plan fell below its policy benchmark of 5.8%.

For the three and five years ended June 30, the DB plan returned an annualized net 6.4% and 5.6%, respectively, above the respective benchmarks of 5.8% and 5.1%.

INPRS returned a net 7.4% for the fiscal year ended June 30, 2019.

By asset class, the top performer for the fiscal year ended June 30 was fixed income (inflation-linked), which returned a net 14.6% (below its benchmark of 16.8%), followed by fixed income (ex-inflation-linked), which returned a net 9.6% (above its benchmark of 8.9%).

Following was risk parity, which returned a net 3.2% (below its 3.7% benchmark); public equities, which returned a net 2.7% (above its 1.2% benchmark); real estate, 2.6% (-9.7%); private markets, 2.3% (-16.7%); absolute return, 0.4% (-1.2%); and commodities, -26.8% (-25%).

As of June 30, the actual allocation was: 21.9% public equities; 19.4% fixed income (ex-inflation-linked); 13.4% risk parity; 12.2% private markets; 10.6% absolute return; 7.3% fixed income (inflation linked); 6.8% real estate; 6.6% commodities; and 1.8% cash and overlay.