The Florida Retirement System’s pension fund assets returned 8.98% for the fiscal year ended June 30, beating its benchmark of 8.22% to reach a total market value of $160.4 billion, according to an email from the Florida State Board of Administration.
The system reported three-, five- , 10-, and 20-year annual returns of 7.62%, 8.69%, 6.85%, and 6.35%, respectively, all of which have outperformed their benchmarks of 6.89%, 7.88%, 6.13%, and 5.76%, respectively.
Private equity was the top-performing asset class, returning 17.3%, compared to its benchmark of 14.11%, followed by global equity, which gained 11.55%, compared to its 11.11% benchmark, and strategic investments, which returned 7.76%, compared to its benchmark of 6.58%. Real estate investments returned 7.21%, just beating its benchmark of 7.2%, while cash and cash equivalents returned 1.42%, surpassing its benchmark of 1.29%.
The current asset allocation is 56.1% in global equity, with a target allocation of 53%; 18.7% in fixed income (18% target), 8.9% in real estate (10% target); 8.1% in strategic investments (12% target); 7.1% in private equity (6% target); and 1.1% in cash and cash equivalents (1% target).
For fiscal year 2017, the fund reported a 13.77% return on investments, and total assets of $153.6 billion.