Baltimore City Police and Fire Employees Pension Fund returns -8% for the year, below benchmark
For the three, five and ten-year periods ended June 30, the pension fund recorded an annualized return of 5.9%, 6.4% and 7%, below its respective benchmarks of 7.8%, 7.4% and 7.9%.
BCFPERS had returned 29.3% for the year ended June 30, 2021.
The Pension Fund’s latest fiscal year returns reflect a challenging return environment for public equities and fixed income over the past year, which has been exacerbated by heavy exposure to asset classes totaling over 60% of its total assets.
For the year ended June 30, the Russell 3000 Index and the Bloomberg US Aggregate Bond Index posted returns of -13.9% and -10.3%, respectively, in stark contrast to returns of 44. 2% and 4.6% for the year ended June 30, 2021.
For the most recent year, private equity was the best performing asset class, returning 22% for the year ended June 30 (below its benchmark of 24.1%) , followed by real estate at 21.3% (below its benchmark index of 21.5%). ).
This is followed by private real estate assets, which returned 17.5% (above its benchmark of 17%); private debt, at 13% (no benchmark); hedge funds, -2.5% (-5.4%); fixed income, -9.2% (-10.9%); domestic stocks, -13% (-13.9%); and international equities, -25.9% (-19.4%).
The report did not disclose whether any of the returns were gross or net of fees.
As of June 30, the actual allocation was 26.5% domestic equities, 22.7% international equities, 14.3% fixed income, 12.8% private equity, 9.4% real estate, 5.8% hedge funds, 4.4% real assets, 2.8% private debt and the rest in cash.
Pension fund spokeswoman Amy E. Baskerville could not immediately be reached for further information.