Public plans rack up 12 percent gain during fiscal 2013
Fiscal 2013 proved a good year for U.S. state and local government plan funds, as their collective investments recorded a 12.4 percent gain, while their real estate investments returned 9.8 percent.
The data, collected by Wilshire Associates from 275 public funds, shows that real estate investments posted an annualized three-year return of 18.3 percent, compared with an annualized 11.4 percent return from the pensions’ overall investments.
Driven primarily by escalating stock prices, public plans easily outstripped their fiscal 2012 average gain of 1.4 percent, though they fell short of their resounding 21.1 percent return during fiscal 2011.
Wilshire Associates’ research found that public plans’ real estate investments returned 11.1 percent during fiscal 2012 and 19.9 percent for fiscal 2011.
Public plans have placed 45 percent of their assets in U.S. equities, acc