The N.C. pension fund that provides retirement benefits for 820,000 teachers, state employees and others gained 7.94 percent in the third quarter, just missing its target of 8.05 percent.
Total assets in the plan increased to $69.7 billion as of Sept. 30, state Treasurer Janet Cowell's office reported today.
While real estate investments saw gains for the first time this year during the quarter, the fund still missed targets for global stocks, which account for half of the total assets. That category gained 12.99 percent, less than the 13.15 percent target.
“While markets recover and the possibility of a double-dip recession decreases, we still face an economy where return expectations are lower than they have been historically,” Cowell said in a prepared statement. “We will maintain a long term view and continue work to minimize risk.”
Fixed income and alternative investments, mostly in private equity, exceeded target returns.
The fund is the 10th largest public pension in the U.S.
For the year ended Sept. 30, the fund gained 9.44 percent, less than the 9.89 percent target.