Nevada Public Employees returns 12% for fiscal year

Nevada Public Employees’ Retirement System, Carson City, reported a gross return of 12% for the fiscal year ended June 30, according to an investment report posted on the website of the $64.1 billion pension fund.

The investment return fell short of the policy benchmark of 14%.

“The one-year performance differential relative to the benchmark is almost entirely attributable to private equity, which is benchmarked against public equity,” CIO Steve Edmundson said in an email.

The pension fund earned a gross return of 9.1% for the fiscal year ended June 30, 2023.

For the three-, five- and 10-year periods ended June 30, Nevada PERS earned gross returns of 5.1%, 9.7% and 8.4%, respectively. The benchmark returns for the respective periods were 5.5%, 9.4% and 8.2%.

U.S. stocks made up the pension fund’s top-performing asset classes, earning a gross return of 24.7%, followed by international stocks, which earned 11.5%. Their respective benchmarks were 24.6% and 11.2%.

As of June 30, the actual allocation was 35% U.S. stocks, 27.8% U.S. bonds, 13.9% international stocks, 11.2% short-term investments, 7.7% private equity and 4.4% private real estate. The target allocation is 34% U.S. stocks, 28% U.S. bonds, 14% international stocks, 12% short-term investments, and 6% each private equity and private real estate.