IPERS’ investment performance yields 7.97% for FY 2018

The $32.26 billion Iowa Public Employees’ Retirement System (IPERS) investment portfolio reported a 7.97 percent return for the fiscal year ended June 30, 2018, exceeding its benchmark return by 0.18 percent and exceeded the actuarial return assumption of 7 percent.

“While we are pleased with this year’s investment performance, IPERS’ focus is long-term — 30 to 50 years out — in analyzing the fund’s performance,” said IPERS’ CEO Donna Mueller. “For IPERS, a more significant measurement is our 30-year annualized return, which is 8.72 percent. The next big indicator of IPERS’ financial health will come from the annual actuarial valuation, due in December.”

IPERS’ actuary, Cavanaugh Macdonald Consulting in Bellevue, Neb., is currently conducting the valuation. Patrice Beckham, principal and consulting actuary, will present IPERS’ 2018 actuarial valuation findings at the IPERS investment board’s meeting scheduled for Dec. 6, 2018. IPERS’ updated funded status will be included in the valuation report.

IPERS paid $2 billion in retirement benefits during the last fiscal year, with $1.7 billion paid in Iowa.

Real estate is part of the IPERS’ private real assets class and has a target allocation of 7.5 percent.