Public Pensions Lock Down a 4.67% Gain in Q3

“U.S. public pensions ended the third quarter with a median gain of 4.67 percent as bond managers beat their benchmarks by buying riskier debt and fixed-income securities with longer maturities, Wilshire Associates said.

The gains raised returns for state- and local-government pensions with assets of more than $1 billion to 8.2 percent for the 10-year period through Sept. 30, the first quarter since 2007 that funds of that size surpassed 8 percent over a decade.

“It gives that strong message to stay the course and look to the long term,” because the returns came near projected results, said Robert Waid, a managing director at Wilshire, a consultant to investors and pensions. “The 10-year numbers are pretty close to what the actuaries give for a 10-year target.”

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