The latest fiscal year's improved performance likely benefited from stronger market returns for the period in both equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above their respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
Of the 52 public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Friday, the median return for the period was 7.6%.
By asset class, the pension fund's top performer was domestic equities, which returned a net 19% for the fiscal year ended June 30 (equal to its benchmark); followed by international developed markets equities, which returned a net 15.3% (18.8% benchmark); emerging markets debt, 6% (11.4%); emerging markets equities, 4% (1.8%); global fixed income, 2.7% (-1.3%); alternative assets and real estate, 1.8% (11.1%); domestic fixed income, 0.1% (-0.9%); and global real estate investment trusts, -4% (-4.6%).
As of June 30, the actual allocation was 23% each domestic equities and private equity/venture capital; 12% real estate; 10% international developed markets equities; 8% private market debt; 7% domestic fixed income; 5% infrastructure/commodities/farmland; 4% emerging markets equities; and 2% each emerging markets debt/multiasset credit, global high yield, global REITS and international developed markets fixed income.
The target allocation is 22% domestic equities, 19% private equity/venture capital, 15% real estate, 9% private market debt, 8% international developed markets equities, 7% infrastructure/commodities/farmland, 6% domestic fixed income, 5% emerging markets debt/multiasset credit, 4% emerging markets equities, 2% each global high yield and international developed markets fixed income, and 1% global REITs.
