US - The Public Employee Retirement System of Idaho (PERSI) has smashed its own records for the past two decades by delivering a 20% annual return.
Return rates of over 40% in emerging market assets and global equity exposures enabled the fund to exceed its 17% target for the 2007 fiscal year.
PERSI CIO, Bob Maynard, commented at the end of June: “The fund as a whole lost a bit for the month (down -0.2%) and ended up an exceedingly strong 20% for the fiscal year, at $11.46bn for the defined benefit (DB) plan and $11.75bn for the DB and defined contribution (DC) plans combined.”
In terms of managerial performance for PERSI, investment firm Zesiger produced returns of 43.9% and 42.6% on its global equity absolute return mandates, beating benchmarks by 20%. This was in no small part due to emerging markets exposure, according to the CIO’s report.
Maynard commented on this alternative asset as a whole: “Almost 1% of this out performance came in June, as emerging markets substantially out performed other capital markets.”
Bernstein Emerging produced the best return overall with 47.5% for an international equity mandate.
Losers in the field were Adelante REIT which returned -13.4% over the fiscal year on its US equity holding and State Street Global Advisers (SSgA) TIPS, which was down -3.6%.
Maynard commented that TIPS and private equity were the biggest drag on performance, adding: “This was the first year in some time that private real estate outperformed REITs (15.7% to 13%).”
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