US - The Missouri State Employees' Retirement System (MOSERS) returned 14.3% for the year ended June 30 with returns driven in part by strong performance in emerging markets.
The one-year result topped the system's assumed rate of return by 5.8 percentage points.
Emerging market equities proved to be the best performers, providing returns of 22.8%, MOSERS said in a release without revealing its allocation to the asset class.
"While the emerging markets will continue to be unpredictable, we believe that as a result of favourable demographic trends and low levels of debt, many of these markets are positioned to experience above average economic growth," said Rich Dahl, MOSERS chief investment officer.
Hi comments echo those of Ashmore's head of research Jerome Booth, who earlier this month told GP: "The best measure of future income is past income and you just need to look at GDP growth to see how these emerging countries are growing."
Booth argued pension funds should have at least 50% of their assets invested in emerging markets through both debt and equity. (Global Pensions; August 5, 2010)
MOSERS' 10-year return was 4.9%, beating its policy benchmark return of 2.6%.
"These results demonstrate that the MOSERS portfolio was prudently diversified and properly positioned to take advantage of the market rebound that occurred during the first three quarters of the fiscal year and provided significant downside protection during the last quarter," said Dahl.
In the past year, public equities returned 14.3%; public debt, 14.8%; private investments, 19.3%; real assets, 7.4% and hedge funds, 12.6%. MOSERS has $7bn in assets.
The registration deadline for the Workplace Savings & Benefits Awards 2019 is today.
This week's top stories were the DWP giving the green light to CDC and TPR granting extensions for 11 master trust authorisation applications.
Susan Martin says building strong foundations for business are the only way forward as the pensions industry is radically shaken up
The Pensions Regulator (TPR) has granted Now Pensions a six-week extension for its master trust authorisation application after the 31 March deadline, PP can reveal.