Florida SBA reports 8.98% return for FY, above benchmark

The Florida State Board of Administration has reported an 8.98 percent return for the fiscal year ending June 30, 2018, according to John Kuczwanski, manager of external affairs. The return was 76 basis points above its 8.22 percent benchmark. The performance increased the pension fund’s total assets under management to $160.4 billion.

Florida SBA has returned an annualized net 7.62 percent, 8.69 percent, 6.85 percent and 6.35 percent for the three, five, 10 and 20 years ended June 30, respectively, exceeding its respective benchmarks of 6.89 percent, 7.88 percent, 6.13 percent, and 5.76 percent, respectively.

Private equity was the best-performing asset class with a net 17.3 percent, above its 14.11 percent benchmark. Global equity was the second-best performer, reporting an 11.55 percent return, above its 11.11 percent benchmark. Strategic investments followed with a return of 7.76 percent, above its 6.58 percent benchmark, while real estate reported a 7.21 percent return, above its 7.20 percent benchmark. Cash and cash equivalents reported a 1.42 percent return, above its 1.29 percent benchmark, and fixed income reported a –0.16 percent return, above its –0.32 percent benchmark.

As of June 30, the actual allocation for each asset class was 56.1 percent (53 percent target) global equity, 18.7 percent (18 percent target) fixed income, 8.9 percent (10 percent target) real estate, 8.1 percent (12 percent target) strategic investments, 7.1 percent (6 percent target) private equity, and 1.1 percent (1 percent target) cash and cash equivalents.