The $4.7 billion City of Philadelphia Employees Retirement System saw stocks and equities help produce a 12.9% return for the year ended June 30, 2017, more than a point higher than the 11.5% benchmark.
Driven by gains from various Russell and MSCI indices, US equities, non-US developed equities, and non-US equity emerging markets were the top drivers of the fund’s fiscal year performance, achieving 19.6%, 20%, and 22.4% returns for the period, respectively. Three-year returns were 7.8%, 0.4%, and 1.4%, respectively. Five-year returns were 13.7%, 7.3%, and 2.6%, respectively. Only 10-year returns for the US and Non-US developed equity markets were available at 7% and 1%, respectively, as emerging markets have only been in inception since January 2009—and have provided 9.7% returns since then.
Absolute returns, which includes hedge funds, returned 13.5% in the fiscal year. For the three-, five-, and 10-year period, the class returned 1.1%, 4%, and 1.8%, respectively.
Real assets returned 5.7%, beating their 1.6% benchmark for the fiscal year, also steamrolling its -5.7% three-year benchmark at 0.2%. Public real estate reported 0.5% while private real estate reported 7.7% returns—on par with its fiscal benchmark, but under par from its three- and five-year benchmarks. Open-ended real estate has returned 2.2% since its January inception.
MLPs produced an 1.8% gain, returning -10% for the three-year period and 5.2% in the five-year period.
The only negative fiscal returns came from private energy/infrastructure at -1.9%. They were -10.5% in the three-year period, and 1.6% for the five-year period.
Rounding out the report was private assets, which returned 5.8% for the period ending June 30, 2017.
Tags: City of Philadelphia Employees Retirement System, Fiscal Year, pension, Philadelphia