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Ohio Public Employees Retirement System's $104.2 billion defined benefit plan posted a preliminary net return of 8.9% for its fiscal year ended Dec. 31.
The pension plan's preliminary return exceeded its policy benchmark return of 8% for the period, according to an investment report provided by a spokesperson.
The investment report did not provide annualized returns for longer periods.
The pension plan had returned a net 11.2% for the year ended Dec. 31, 2023.
The slightly lower return for the year ended Dec. 31 reflected slightly lower index returns for equities and bonds, although the returns were still impressive. For the year ended Dec. 31, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned 23.8% and 1.3%, respectively, compared with respective returns of 26% and 5.5% the previous year.
For the most recent fiscal year ended Dec. 31, the best-performing asset class was the opportunistic investments asset class, which returned a preliminary net 26.3% (above its benchmark return of 18.8%), followed by domestic equities, which returned a net 23.7% (just below the 23.8% benchmark); securitized debt, at a net 13.7% (14.7% benchmark); private equity, 9.3% (8.9%); real estate investment trusts, 8% (8%); high yield, 7.1% (8.2%); international equities, 7.1% (5.4%); risk parity, 5.7% (5.1%); cash, 5.6% (5.3%); commodities, 5.5% (5.4%); emerging markets debt, 5.2% (1.6%); investment-grade credit, 2% (2.1%); Treasury inflation-protected securities, 1.8% (1.8%); core fixed income, 1.5% (1.3%); U.S. Treasuries, 0.4% (0.6%); and real estate, -3.5% (-7.2%).
As of Dec. 31, the pension plan's actual allocation was 22% domestic equities; 19.2% international equities; 14.8% private equity; 11.6% real estate; 9% core fixed income; 4% high yield;3.2% TIPS; 2.8% investment-grade credit; 2.7% U.S. Treasuries; 2.1% commodities; 1.9% risk parity; 1.8% opportunistic investments; 1.7% securitized debt; 1.1% emerging markets debt; 1% cash; 0.8% REITs; and the rest in private credit.
