Nevada Pension Fund Earns 8.6%

US stocks help raise system’s total asset value to nearly $41.3 billion.

Nevada Public Employees’ Retirement System’s investments returned 8.6% for the fiscal year ended June 30, raising its total market value by $2.57 billion to $41.27 billion, according to investment performance figures published on the system’s website. This compares to last year, when the system returned 10.5%.

The fund’s investments had three-, five-, and 10-year annualized returns of 7.5%, 8.8%, and 7.2%, respectively, and is up 9.4% since its inception in 1983. The fund has a target long-term return of 7.5%. It is the ninth-consecutive year that the state retirement system increased its net position.

The fund’s top-performing asset class was US stocks, which returned 14.3% for the fiscal year, followed by private markets, which earned 13.4% for the fund. International stocks returned 7.2% for the year, while US bonds lost 0.7% in fiscal 2018. Private equity was the top-performing sub-asset classes, returning 17.5%.

The asset allocation of the fund, as of the end of June, was 43.6% in US stocks (target 42%), 29.1% in US bonds (target 30.0%), 17.8% in international stocks (target 18.0%), 9.2% in private markets (target 10.0%), and 0.3% in cash (target 0%).  

The system’s top US equity positions, as of the end of the fiscal year, were 3.93% in Apple Inc., 3.27% in Microsoft, 2.95% in Amazon, and 2.01% in Facebook. Meanwhile, its top international equity positions were in Nestle (1.7%), HSBC (1.31%), Novartis (1.2%), Royal Dutch Shell (1.11%), Roche (1.11%), and BP (1.05%).

The fund’s top asset managers in terms of assets invested are AllianceBernstein, with $8.99 billion, BlackRock, which is just $15 million behind; Mellon Capital with $7.35 billion, and UBS Global and Payden & Rygel, which each account for a little more than $6 billion.

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