Nevada Public Employees returns 9.1% for fiscal year

Nevada Public Employees' Retirement System, Carson City, reported a gross return of 9.1% for the fiscal year ended June 30, according to an investment report the $58 billion pension fund shared with Pensions & Investments.

The investment return fell short of the policy benchmark of 11.9%.

While the pension fund missed its benchmark, CIO Steve Edmundson and his staff noted that it exceeded the 7.25% long-term assumed rate of return.

"Despite ongoing market volatility, elevated inflation, bank failures and rising interest rates, the 2023 fiscal year ended strong for the system," Mr. Edmundson and his staff said in a memo to the board.

The pension fund, however, topped its policy benchmarks on a three-, five- and 10-year basis, earning gross returns of 9.6%, 8.9% and 8.9%, respectively. The benchmark returns for the respective periods ended June 30 were 8.9%, 8.3% and 8.5%.

The pension fund had earned a gross return of -5.1% for the fiscal year ended June 30, 2022.

U.S. stocks made up the pension fund's top-performing asset class, earning a gross return of 19.5%, followed by international stocks, which earned 17.7%. Their respective benchmarks were 19.6% and 17.4%.

All other asset classes posted negative returns. Fixed income returned a gross -2.3%, followed by private markets, which returned -6%. Their respective benchmarks were -2.1% and 9.8%.

As of June 30, the actual allocation was 43.2% U.S. stocks, 24.6% U.S. bonds, 17.8% non-U.S. stocks, 8.2% private equity, 5.3% private real estate and the rest in cash. The target allocation is 42% U.S. stocks, 28% U.S. bonds, 18% non-U.S. stocks and 12% private markets.