For the most recent fiscal year, the best performing asset class for the pension fund was its opportunistic strategies asset class with a net return of 52% for the year ended June 30 (above its 10.4% benchmark), followed by domestic equities at a net 43.2% (below its 44.2% benchmark), which was equaled by commodities at a net 43.2% (below its 45.6% benchmark).
Those were followed by emerging markets equities, with a net return of 39.5% (below its 43.7% benchmark return); private equity, with a net return of 38% (no benchmark available); international developed equities, a net 36.7% (above its 35.4% benchmark return); hedge funds, 16.1% (12.3%); alpha pool, 14.6% (4.1%); private real estate, 10.9% (not available); core real estate, 5.6% (8%); fixed income, 5.2% (4.1%); and private credit, 3.8% (not available). All asset class returns are preliminary and unaudited.
As of June 30, the actual allocation was 23.1% fixed income, 22.5% domestic equities, 13.1% international equities, 10.8% hedge funds, 5.8% emerging markets equities, 5.4% commodities, 5% core real estate, 4.4% midstream energy, 4.2% private credit, 3.9% alpha pool, 1.8% opportunistic assets, 1.6% private equity, 1.2% private real estate, and -2.8% cash and equivalents.
The cash and equivalents allocation is defined by KCERA's investment policy statement as physical cash "adjusted by the net notional exposure of overlay positions and derivative positions for the capital efficiency program."