Louisiana Firefighters returns 3.9% for fiscal year

Louisiana Firefighters' Retirement System, Baton Rouge, returned a net 3.9% in the fiscal year ended June 30, an investment report for the $1.7 billion pension fund shows.

The return falls short of the policy benchmark return of 6.1% for the year, according to the report.

For the three, five and 10 years ended June 30, the pension fund returned an annualized net 8.1%, 4.2% and 6.7%, respectively. The three- and five-year annualized net returns fell short of their respective policy benchmark returns of 9.2% and 5.9%. The 10-year policy benchmark return was not provided.

The pension fund returned a net 6.8% for the fiscal year ended June 30, 2018.

By asset class, fixed income had the highest return, at a net 7.4% for the fiscal year ended June 30 (below its benchmark return of 8.3%). Domestic equities followed, with a net return of 5.9% (below its benchmark return of 9%), followed by global asset allocation at a net 5.1% (6.4%), international equities at 0.9% (1.3%), emerging markets equities at -0.5% (1.2%) and global equities at -2.8% (5.7%). Net returns for alternative investments were not available.

As of June 30, the actual allocation was 30.1% fixed income, 22% domestic equities, 12.2% international equities, 10.6% alternative investments, 9.7% global asset allocation, 9.2% global equities, 5.3% emerging markets equities and 0.9% cash.

The target allocation is 26% fixed income; 22% domestic equities; 16% international equities; 10% each alternative investments, global asset allocation and global equities; and 6% emerging markets equities.

Michael Becker, chief investment officer, could not be immediately reached to provide further information.