For the most recent fiscal year, the pension fund had the second-lowest return among the 39 public pension funds whose returns have been tracked by Pensions & Investments as of Aug. 29. The median return for the universe is 9.8% as of that date.
By asset class, the top performer for the pension fund was emerging markets equities, which returned a net 28.3% for the fiscal year ended June 30 (above its benchmark return of 12.5%); that was followed by domestic equities, which returned a net 16.3% (benchmark 23.1%); hedge funds, 11.5% (9.9%); bank loans, 10.9% (11%); natural resources, 9.7% (5.7%); high-yield bonds, 9% (10.4%); international developed markets equities, 8.1% (11.5%); emerging markets debt, 7.2% (6.3%); infrastructure, 7% (6.6%); cash equivalents, short-duration bonds, 3.8% (3.7%); Treasury inflation-protected securities, 2.7% (2.7%); private equity, 2.5% (31.8%); and real estate, -7.9% (-9.3%).
As of June 30, the pension fund’s actual allocation was 23.3% domestic equities, 13.2% real estate, 10.2% short-duration bonds, 9.4% international developed markets equities, 8.4% emerging markets equities, 7.7% private equity, 4.5% high-yield bonds, 4.2% TIPS. 3.9% cash equivalents, 3.5% risk-mitigating strategies, 3.2% infrastructure, 2.9% bank loans, 2.3% emerging markets debt, 1.9% natural resources and 1.4% hedge funds.
