The New Hampshire Retirement System, Concord, posted a net return of 8.2% for the fiscal year ended June 30 on assets of $11.51 billion, the pension system announced Nov. 7.
The fiscal-year benchmark was 9.8%. The retirement system's assumed rate of investment return is 6.75%.
For the fiscal year ended June 30, 2022, the net return was -6.1%, the first negative result since 2009, and assets were $10.75 billion.
"As long-term investors we know that we will see returns above and below our assumed rate of return in any given year," NHRS Executive Director Jan Goodwin said in a news release. "Because investment results are smoothed on a five-year rolling average, no single fiscal year is recognized all at once, which helps stabilize employer contribution rates."
Goodwin added that the "primary focus" is to meet or exceed the assumed rate of return "over the long term."
The latest fiscal-year return "reflects the diligent efforts of the Independent Investment Committee and NHRS staff to navigate the uncertainties posed by market volatility, inflation and geopolitical instability," Goodwin said.
The three-, five-, 10- and 25-year returns for the periods ended June 30 were 9.6%, 7.1%, 7.9%, and 6.5%, respectively, according to the news release. All returns are net of fees.
For the fiscal year ended June 30, the asset allocation categories were: domestic equity (30.4%); fixed income (19.8%); alternative investments (19.6%); non-U.S. equity (18.2%); real estate (11.3%); and cash (0.9%). For the three months ended Sept. 30 – the first quarter of the current fiscal year – the pension system's net return was -2.45% vs. a benchmark of -1.7%. Assets at the end of the quarter were $11.07 billion.
For the year-ago first quarter, the net return was -3.35%. Assets were $10.26 billion.