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It was another strong year for MPERS’ investment portfolio. Fiscal Year 2024 performance came in at 13.29%, which outperformed the policy benchmark (12.29%), median public fund (11.4%), and most importantly, the actuarial assumption (6.5%). Simpler was better was the theme again for the past year, as global equities were up another 19% for the year. Traditional fixed income was up 2.7% for the year, so a traditional 60/40 mix of stocks and bonds generated a 12.7% return. MPERS’ portfolio typically trails peers and traditional 60/40 portfolios in this environment, so we are very pleased with the overall results. The strong returns should also provide more downward pressure on employer contribution rates.
MPERS’ long-term returns continue to look strong relative to any metric. MPERS’ 3-, 5-, and 10-year returns all rank in the top 1% of the peer universe, while the 20-year return ranks in the top 2%.
Fiscal Year 2025 is also off to a good start. Stocks and bonds have rallied further in recent months in hopes that the Federal Reserve will start to reduce interest rates and successfully navigate a “soft landing” for the economy. Overall, the portfolio is up an estimated 2.5% to start the year (July 1st – September 4th).
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