US - The Massachusetts state pension fund posted a return of 13.39% for fiscal 2005 with assets rising to US$36.3bn.
The one-year return outperformed the S&P 500 over the same period, which returned 6.32% and exceeded the actuarial rate of return of 8.25% and the policy benchmark return of 12.49%.
Announcing the results, treasurer Timothy Cahill said Pension Reserves Investment Trust (PRIT) had grown by more than $10bn over the last two and a half years.
“These results reflect the steps that the PRIM board has wisely taken over the last few years to diversify the pension fund, reduce the overall risk of the portfolio, and protect the value of the fund on behalf of state employees, retirees and the taxpayers of Massachusetts,” said Cahill, chairman of the board and whose office oversees the state pension.
Emerging markets equities was the best performing asset class for fiscal 2005, posting a return of 37.36%. Real estate returned 30.78% while alternative investments posted a gain of 26.29%. High yield debt returned 15.38%, international equity 14.14%, timber 12.91%, domestic equity 7.81%, fixed income 7.54% and hedge funds 6.69%.
The treasury said the median return of large public pension funds was 9.95%, according to the Wilshire Trust Universe Comparison Service, which measures performance in the pension fund industry.
On the back of the asset gain, the fund now ranks in the 5th percentile relative to all US public pension plans with a total market value greater than US$1bn.
Asset allocation stands at 5.7% emerging markets equities, 8.1% real estate, 6% alternative investments, 7.5% high yield debt, 15.6% international equity, 3.6% timber, 32.6% domestic equity, 16.2% fixed income and 4.8% hedge funds.
The Pensions Regulator (TPR) has set out plans to use "new regulatory initiatives" with over 1,000 schemes as it aims to tighten its regulatory grip and boost member outcomes.
HM Revenue and Customs (HMRC) has announced it is delaying the provision of data that will enable pension schemes to confirm the guaranteed minimum pension (GMP) benefits to pay to members until the end of the year.
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