Cincinnati Retirement System Hits Its 7.9% Fiscal Target

But gains are down from previous year’s 14.6%. Domestic stocks, private equity did the best.

The Cincinnati Retirement System hit its 7.9% investment target for the fiscal year ended June 30, documents released by the fund’s investment committee show.

The fund for local employees now stands at $2.3 billion. Last year, it returned 14.6%. The Cincinnati Retirement System could not be reached for comment regarding the dip in returns.

The fund has returned an average of 6.6% annually over the past three years, 8.3% over the past five years, and 6.5% for the past 10, according to the documents.

For the June 30-ending period, the fund allocated 29.7% of its investment portfolio to US equities, which produced the best returns (14.1%). Private equity followed at 11.4% (7.8% of the portfolio). Risk parity returned 9% (a 5.1% allocation), followed by hedge funds at 8% (0.1%). Real estate, foreign equities, fixed income, and infrastructure rounded out the returns at 7.9%, 5.1%, 2.3%, and 1.7%. The fund allocates 10.4%, 22.3%, 17.1%, and 7.2% to those classes, respectively. The remainder was in cash.

In 2017, the pension system was 75.5% funded. The investment committee’s report did not mention the system’s current funded status.

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