The latest fiscal year's significant improvement over the prior fiscal year reflects improved returns both in equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 18.9% and -0.2%, respectively, well above the respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
By asset class, domestic equities was the top performer, with a net return of 17.6% for the fiscal year ended June 30 (below the benchmark return of 19%); followed by global equity at 16.9% (above its 16.5% benchmark); international equities, 16.8% (12.7%); emerging markets debt, 11.2% (9.4%); emerging markets equities, 8% (1.7%); global asset allocation, 7.3% (9.6%); core fixed income, -0.7% (-0.9%); U.S. Treasury inflation protected securities, -1.4% (-1.4%); and alternatives, -1.9% (no benchmark listed)
As of June 30, the pension fund's actual allocation was 28.8% domestic equities, 17.5% core fixed income, 12.5% alternatives, 11.7% global equity, 11.1% international equities, 6% emerging markets equities, 4.1% each emerging markets debt and GAA, 2.8% TIPS and 1.4% cash.
The target allocation is 27.5% domestic equities, 18% core fixed income, 15% alternatives, 11.5% international equities, 10% global equity, 7% emerging markets equities, 5% emerging markets debt and 3% each GAA and TIPS.
