IPERS reports –1.10% net of fee total fund return for CY2018

The $32.45 billion Iowa Public Employees’ Retirement System (IPERS) has reported a net of fee total fund return for calendar year 2018 of –1.10 percent, according to a board meeting summary. The return underperformed the policy benchmark return of –0.59 percent.

Wilshire provided the investment performance report. Wilshire’s performance attribution analysis indicated the underperformance was due to poor performance from external active investment managers, mainly in the fourth quarter of 2018. No further information was provided.

In late 2018, IPERS made plans to invest approximately $300 million in private real assets in calendar year 2019, with real estate investments receiving the bulk of any new private real assets commitments. However, IPERS staff was skeptical that many core opportunities will become available that meet the fund’s 5 percent real return hurdle.

In the summary, CIO Karl Koch also reviewed the IPERS’ asset allocation and reported