The latest fiscal year's improved performance benefited from stronger market returns for the period in both equities and fixed income. For the year ended June 30, the Russell 3000 and Bloomberg U.S. Aggregate Bond index returned 19% and -0.2%, respectively, well above the respective returns of -13.9% and -10.3% for the year ended June 30, 2022.
Of the 32 public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Monday, the median return for the period is 7.6%.
By asset class, the pension fund's best performer was domestic equities, which returned a net 18.9% for the fiscal year ended June 30 (just below the benchmark return of 19%), followed by international equities, which returned a net 16.6% (15.4%); liquidity reserve, a net 3.9% (3.6%); fixed income, 0.1% (-0.4%); alternative investments, -1.4% (-0.5%); and real estate, -5% (-5.5%).
As of June 30, the actual allocation was 26% domestic equities, 21.9% international equities, 20.8% alternative investments, 20% fixed income, 9.8% real estate and 1.5% liquidity reserve.
The target allocation is 26% domestic equity, 22% international equity, 22% fixed income, 19% alternative investments, 10% real estate and 1% liquidity reserve.
