You are here

Fund Performance

Investment returns play an important role in the funded status of the IPERS Trust Fund because they provide the largest percentage of dollars needed to pay future benefits.

In this section of the website, you'll find the type of assets IPERS invests in, and the returns on the investments over time.

Information is presented in a language that will be understood by a wide audience, although certain terms may be unfamiliar to some site visitors. Investopedia provides definitions of industry terms. Though it is not part of IPERS’ website, it provides definitions of over 4,500 terms related to finance and investing.

Growth of Net Investment Portfolio Assets

Fiscal Years Ended June 30

Growth of Net Investment Portfolio Assets

Asset Allocation

Asset allocation is a process of investing across many different asset classes with the purpose of diffusing the overall volatility of IPERS' investment returns. The diversification of the investment portfolio's asset allocation has a great influence on investment returns. The Investment Board establishes a policy benchmark a strategic set of target allocations for each asset class that communicates the Board's tolerance for market risk in pursuit of the policy return objectives. The Fund’s investments must be periodically rebalanced to keep the allocations in line with the policy benchmark target allocations.

Below are the asset allocation targets established by the Board.

IPERS Asset Allocation Targets
Target Allocations as a Percentage of Total Fund

  • Domestic Equity: 22%
  • International Equity: 15%
  • Global Smart Beta Equity: 3%
  • Core-Plus Fixed Income: 27%
  • Public Credit: 3.5%
  • Public Real Assets: 7%
  • Cash: 1%
  • Private Equity: 11%
  • Private Credit: 3%
  • Private Real Assets: 7.5%

Domestic Equity: Investment in stocks of companies based in the United States.

International Equity: Investment in stocks of companies based outside the United States.

Global Smart Beta Equity: Investment in stocks of companies located across the world, but with the objective of capturing factor exposures using a systematic, rules-based approach.

Core-Plus Fixed Income: Investment in bonds issued by governments and companies throughout the world.

Public Credit: Investment in high-yield bonds issued by North American companies, and bonds issued by governments and companies located in emerging, less-developed countries.

Public Real Assets: Invesment in inflation-sensitive securities such as U.S. Treasury inflation-protected securities (TIPS), master limited partnerships (MLPs), and real estate investment trusts (REITs).

Cash: Investment in highly liquid, stable-value securities, such as money market instruments or funds.

Private Equity: Investment in the stock and debt of privately held companies. These investments are held in limited partnerships designed to limit IPERS’ potential losses.

Private Credit: Investment in partnerships that make loans to private middle-market companies and partnerships that make loans to finance commercial real estate.

Private Real Assets: Investment in commercial real estate located in the United States, and partnerships that invest in timberland and farmland in North America.

To learn more about IPERS’ portfolio, view the Comprehensive Annual Financial Report.

Back to Top