Iowa Public Employees posts 9.1% fiscal-year return

Iowa Public Employees’ Retirement System, Des Moines, posted a net return of 9.1% for the fiscal year ended June 30.

The $43.6 billion pension fund’s return for the period exceeded its policy benchmark return of 8.8%, according to a performance report included with Sept. 25 board meeting materials.

For the three, five and 10 years ended June 30, the pension fund returned an annualized net 3.4%, 8.2% and 7.5%, respectively, above their respective benchmarks of 3.2%, 8.1% and 7.4%.

IPERS had returned a net 5.4% for the fiscal year ended June 30, 2023.

For the most recent fiscal year, the pension fund’s return fell just short of the median return of 9.9% among the 70 U.S. public pension funds whose returns have been tracked by Pensions & Investments as of Sept. 25.

By asset class, the top performer was domestic equities, which returned a net 24.2% (above its benchmark return of 23.1%); followed by global smart beta at a net 13.4% (below its 13.7% benchmark); international equities, 12.7% (11.6%); public credit, 10.7% (9.8%); private credit, 8.5% (8.5%); liquid absolute-return strategies, 7.1% (5.6%); private equity/debt, 6.3% (6.3%); core fixed income, 2.4% (2.6%); and private real assets, -8.4% (-8.4%).

IPERS' alternative investment asset classes are benchmarked to their own past performance.

As of June 30, the actual allocation was 25.3% core fixed income, 21.2% domestic equities, 18.4% private equity/debt, 13% international equities, 7.1% private real assets, 5.9% private credit, 4.9% global smart beta, 3% public credit and 1.2% cash.