August 24, 2012
FOR IMMEDIATE RELEASE
Treasurer Cowell Reports Fiscal Year End Pension Fund Returns
RALEIGH – State Treasurer Janet Cowell reported today that North Carolina’s pension fund returned 2.21 percent for the fiscal year ending June 30, 2012. The fund declined 1.23 percent during the second quarter. Pension fund assets were valued at $74.5 billion as of June 30, 2012.
While the U.S. markets held steady, international markets declined considerably during the fiscal year. The pension fund’s global equity (stock) portfolio lost 5.98 percent over the fiscal year and 5.88 percent for the second quarter. However, these decreases were mitigated by strong gains in the fixed income (bond) portfolio, which returned 11.66 percent for the year and 3.44 percent for the quarter.
With stock markets down, the fixed income portfolio helped the fund outperform its peers. Compared with other public pension plans with more than $1 billion in assets, the North Carolina fund performed in the top 25 percent for the fiscal year, according to Universe Source provided by the Bank of New York Mellon Corp.
“Equity markets across the globe have suffered this quarter from the continuing instability in the Eurozone and a slowdown in China,” Cowell said. “At the same time, movement to lower risk investments such as fixed income and real estate helped buffer those losses.”
Real estate has rallied from last year, earning 7.88 percent for the fiscal year and 1.72 percent for the quarter. The credit portfolio returned 0.37 percent for the fiscal year and 2.57 percent for the second quarter. The alternatives portfolio, composed mostly of private equity, returned 5.39 percent for the fiscal year and 2.15 percent for the quarter.
View the Second Quarter Performance Report
The North Carolina Retirement Systems, the formal name for the pension fund, is now the eleventh largest public pension fund in the country. It provides retirement benefits and savings for more than 850,000 North Carolinians, including teachers, state employees, firefighters, police officers and other public workers. For more information, visit www.nctreasurer.com.