FY 19-20 Investment Return

Article

LAFPP is reporting a return of 3.04% for the fiscal year ending June 30, 2020, as assets totaled over $23.​5 billion at the year-end. This positive return follows the historic stock market decline in the first quarter of 2020 due to the COVID-19 pandemic and subsequent recovery during the second quarter of 2020.  The 3.04% return exceeded LAFPP’s target allocation index of 2.50% by 54 basis points. Investment returns were led by LAFPP’s strong performance in the domestic ​equities and fixed income markets, which generated returns of 4.79% and ​10.26%, respectively.

The 3.04% return is below the Fund’s new actuarial assumed rate of return of 7.00%, which is the long-term return required to meet current and future obligations for members. Our 10-year investment return is ​9.05%, and the 20-year return is ​5.85%.  LAFPP has a long-term investment horizon and uses an asset allocation which encompasses a strategic long-term perspective of the capital markets.

LAFPP is one of the largest public safety pension funds in the U.S.  The Plan administers retirement and health subsidy benefits for over 26,000 current and retired public safety employees and their beneficiaries for the City of Los Angeles.  More information is available at About LAFPP.