The combined defined benefit plans of the Minnesota State Board of Investment, St. Paul, returned 30.3% in the fiscal year ended June 30, the highest return since the 1983 fiscal year.
The $89.9 billion combined fund topped its benchmark return of 28.8% in the 2021 fiscal year, fueled by the 45.3% return of the fund's domestic equity portfolio, the 37.8% return of the private markets portfolio and 36.8% from the international equity allocation, Executive Director and CIO Mansco Perry III said in an interview.
The combined fund's asset allocation is public equity, 50%, with 33.5% in domestic equity and 16.5% in non-U.S. equity; fixed income, 25%; and private markets, 25%. The uncommitted capital for private market commitments is managed in an S&P 500 index fund.
Mr. Perry provided longer-term returns for the combined fund as of June: three years, 13.4% (benchmark, 13%); five-years, 13.1% (12.6%); 10 years, 10.4% (10.1%); 20 years, 8.1%; (7.9%); and 30 years, 9.3% (9%).
The board also manages defined contribution plans and various state funds, but the total assets in those funds as of June 30 has not been calculated yet, Mr. Perry said.