Returns of the $74.2 billion combined defined benefit plan fund run by the Minnesota State Board of Investment, St. Paul, met or exceeded its composite benchmarks as of Dec. 31 in the periods measured by the board.
For the one-year period, the combined funds returned 20.1% compared to 20% for the benchmark, said Mansco Perry III, executive director and CIO of the board, in an email.
Annualized returns of the fund over longer time periods were three years, 11.3% (benchmark, 11.1%); five years, 8.2% (8.2%); 10 years, 9.8% (9.6%); 20 years, 6.5% (6.3%); and 30 years, 8.8% (8.5%).
The fund's return for the quarter ended Dec. 31 matched that of the benchmark at 5.8%, the board's report showed.
The DB plan fund's returns in the quarter were driven by $4.1 billion of investment returns, less $590 million in net outflows, the investment report showed.
As of Dec. 31, the board managed a total of $104.3 billion, including the combined defined benefit funds, $836 million of other small defined benefit plans and $7.9 billion in participant-directed retirement funds. The balance of the assets the board manages are in various state funds.