South Dakota Retirement System returns 5.5%

South Dakota Retirement System, Pierre, posted a preliminary net return of 5.5% for the fiscal year ended June 30.

The return fell below the retirement system's capital markets benchmark return of 10.7% for the period, according to a performance report on the website for the South Dakota Investment Council, which oversees the investment management of the $14.1 billion pension fund.

For the three, five and 10 years ended June 30, the retirement system returned an annualized net 8.5%, 6.4% and 7.6%, respectively. Benchmark returns for those periods were not provided.

SDRS had returned a net -0.7% for the fiscal year ended June 30, 2022.

The latest fiscal year's improvement over the prior period reflects improved returns both in 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.

Returns by individual asset classes were not provided.

As of June 30, the system's actual allocation was 35% cash, 23% public equity, 13% investment-grade debt, 12% opportunistic real estate, 11% private equity, 4% high yield corporate debt, and 1% each hedge funds and real estate.