The Maryland State Retirement and Pension System today has reported that its portfolio returned 8.06 percent, net of fees, on investments for the fiscal year that ended June 30, 2018 — exceeding the 7.50 percent assumed actuarial return rate. The fund’s performance raised the system’s assets to $51.9 billion, an increase of $2.8 billion over last year.
“The system’s returns were supported by strong results in both public and private markets,” said Andrew Palmer, CIO. “Private equity provided 19.6 percent net of all fees and expenses and continues to be the best-performing asset class for the System. Public equities provided a 10.6 percent return, closely followed by private real estate at 9.5 percent. At the other end of the spectrum, the rate-sensitive portfolio provided modest positive returns despite 10-year U.S. Treasury yields rising more than 0.5 percent for the year.”
The pension funds asset allocation is as follows:
| Asset Class |
Asset Allocation |
Return |
| Private Equity |
12.5% |
19.64% |
| Public Equity |
37.5% |
10.66% |
| Real Assets |
11.9% |
8.16% |
| Absolute Return |
8.4% |
3.26% |
| Credit |
8.0% |
2.31% |
| Rate Sensitive |
19.9% |
0.55% |
| Total |
100.0% |
8.06% |
“The board is focused on its obligation to pay member pension benefits in full and on time,” said State Treasurer Nancy Kopp, chair of the Maryland State Retirement and Pension System Board of Trustees. “Investment returns this past year are consistent with the long term expectations for our diversified asset allocation and the Board is pleased that, as a result of its oversight and the diligent work of the System’s Investment Division, this asset growth helps to ensure the sustainability of our Plan.”
