A decade ago, the largest US pension plan decided to abandon its home country bias favoring US stocks. Now, pension officials wonder if it was the right move as US stock performance has shined.
But gains are down from previous year’s 14.6%. Domestic stocks, private equity did the best.
Gains 0.88% after registering first loss in nearly three years during Q1.
Returns surpass 7% rate assumption, but fall short of last year’s 12.95%.
For a change, the small-stock S&P 600 outpaced its large-cap sibling, with healthcare a big plus.
Pensions returned 0.37% during Q1, despite Canadian equities falling 3%.
De-risking measures prep for possible market shock.
Europe seeing recovery, while China presents risk, opportunity.
MSCI EM Index currently at 28.3% returns in 2017.
Plan earns $851 million in fiscal 2017.