For the most recent fiscal year, the pension fund’s positive performance was driven by strong market performance in public equities. Its top-performing asset class was domestic large-cap equities, which returned a net 24.3% for the fiscal year ended June 30, above its Russell 1000 index benchmark of 23.9%.
The median return of the 40 public pension funds whose fiscal-year returns have been tracked by Pensions & Investments as of Aug. 29 is 9.8%.
Among the pension fund’s other asset classes, international equities was the next top performer for the latest fiscal year with a net return of 14.2% (above its benchmark return of 11.6%); followed by domestic small-cap equities at 13.4% (benchmark 10.1%); liquid absolute return, 10.4% (9.8%); private equity, 8.8% (33.2%); intermediate fixed income, 5.4% (4.2%); risk parity, 5.4% (11.7%); infrastructure, 4.1% (8.7%); private credit, 2.9% (14.7%); core real estate, 0.8% (-5.5%); Treasuries, 0.8% (0.3%); and non-core real estate, -2.5% (-3.6%).
As of June 30, the actual allocation was 20.2% international equities, 18.7% domestic large-cap equities, 7.7% private credit, 7.2% intermediate fixed income, 7.1% infrastructure, 6.8% core real estate, 5.9% Treasuries, 5.8% private equity, 4.5% non-core real estate, 4.4% risk parity, 4.2% domestic small-cap equities, 3.9% TIPS, 2.7% absolute return and 0.9% cash.
The target allocation is 18% international equities; 14% domestic large-cap equities; 8% private credit; 7.5% infrastructure; 7% intermediate fixed income; 6.5% core real estate; 6% each non-core real estate and Treasuries; 5% each absolute return and private equity; 4% each credit, domestic small-cap equities, risk parity and TIPS; and 1% cash.
