Missouri Local Government Employees returns 29.5% for fiscal year

Missouri Local Government Employees Retirement System, Jefferson City, reported a net return of 29.5% for the fiscal year ended June 30.

The $10.2 billion pension fund's return well exceeded its policy benchmark return of 16.8% for the period, said Brian K. Collett, chief investment officer, in an email.

For the five and 10 years ended June 30, LAGERS returned an annualized net 12.4% and 10%, respectively, above their respective benchmarks of 9.5% and 7.7%.

The pension fund returned a net 1.6% for the fiscal year ended June 30, 2020.

For the most recent fiscal year, equities was the best performer with a net return of 42.3% for the year ended June 30, followed by strategic investments at a net 36.4%; real assets, 34.5%; alpha portfolio, 12.7%; and total fixed income, -1.5%. Benchmark information was not provided.

The pension fund's target allocation is 36% real assets, 35% equities, 31% fixed income, 15% alpha, 8% strategic investments and -25% net leverage.