The latest fiscal year's improved performance likely benefited from stronger market returns for the period in both equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above their respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
Of the 72 U.S. public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Sept. 19, the median return for the period was 7.6%.
For IPERS' most recent fiscal year, domestic equities had the highest return, at net 18.5% for the year ended June 30 (just below the benchmark return of 19%), followed by international equities at a net 14.3% (above its 12.7% benchmark); global smart beta, at a net 13.7% (13.9%); public credit, 8.1% (8.4%); private credit, 5.5%; cash, 1.8% (3.6%); core fixed income, -0.2% (0.0%); liquid absolute return strategies, -0.5% (4.6%); private real assets, -4.5%; and private equity, -5.7%.
IPERS' alternative investment asset classes are benchmarked to their own past performance.
As of June 30, the actual allocation was 21.8% core fixed income, 20.8% domestic equities, 19.1% private equity/debt, 16.1% international equities, 7.9% private real assets, 5.3% private credit, 5% global smart beta, 2.9% public credit and the rest in cash and liquid absolute return strategies.
