Los Angeles Water & Power generates 3.5% return for fiscal year

Los Angeles Water & Power Employees' Retirement Plan's $13.3 billion defined benefit plan returned a net 3.5% for the fiscal year ended June 30.

The plan's return fell slightly short of its policy benchmark return of 3.6%, according to an investment report posted on the pension fund's website.

For the three and five years ended June 30, the pension fund returned an annualized net 6.25% and 6.43%, respectively, below their respective benchmarks of 6.31% and 6.49%.

The pension plan returned a net 6.6% for the fiscal year ended June 30, 2019.

By asset class, domestic equities returned a net 7.3% for the fiscal year ended June 30 (above its benchmark return of 6.5%), followed by fixed income, which returned a net 4.75% (below its benchmark of 4.96%); international equities, -0.75% (-4.7%); and hedge funds, -6.6% (4.9%). The pension plan's return information for private equity, real estate and real return asset classes lag by one quarter.

As of June 30, the actual allocation was 34.5% domestic equities, 24% fixed income, 18.6% international equities, 7.5% real estate, 5.6% private equity, 4.4% real return, 4.3% hedge funds and 1.1% cash.

Jeremy Wolfson, chief investment officer, could not be immediately reached for further information.