Florida State Pension Plan Returns 13.77%

Every asset class outperformed its benchmark, except private equity.

The $153.6 billion Florida Retirement System Pension Plan reported a 13.77% return on investments for the year ending on June 30, surpassing its benchmark of 12.96%, and easily beating last year’s return of 0.54%.

“We are always pleased to post double-digit returns, and this year is no exception,” said Ash Williams, CIO of the Florida State Board of Administration, according to Reuters.

“However, our focus has always been on the long-term sustainability of the plan, and we must acknowledge current dynamics in the financial markets moderating projected future returns.”

Total assets under management for the pension plan grew to $153.6 billion from $141.3 billion at the end of June 2016. The Pension Plan portfolio is currently divided into six asset classes:  Global Equity (57.8%); Fixed Income (17.9%);  Real Estate (8.9%);  Private Equity (6.4%); Strategic Investments (8.2%); and Cash & Cash Equivalents (0.8%).

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The pension’s top performing asset class was global equity, which climbed 19.6% for the fiscal year to June 30, after losing 3.09% last year, and beating its benchmark of 19.06%. Private equity was the next strongest performing asset class, rising 18.27%, which was up from 6.21% in 2016, but below its benchmark of 22.06%.

Following private equity was the strategic investments asset class, which gained 9.75% for the fiscal year to June 30, compared to 1.84% last year, and above the benchmark of 6.6%. Real estate investments returned 8.73%, above the benchmark of 6.87%, but below last year’s return of 12.66%. Cash and cash equivalents gained 0.62%, compared to its benchmark of 0.54%, and last year’s return of 0.33%, while fixed-income investments edged 0.37% higher, compared to the benchmark, which lost 0.16%, and below last year’s performance of 4.35%

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