LAFPP Reports Revised Preliminary Return of 13.01 Percent for 2012–13



Los Angeles Fire and Police Pensions (LAFPP) is reporting a revised preliminary return of 13.01 percent for the fiscal year ending June 30, 2013 (updated from the preliminary return of 12.67 percent reported on July 17, 2013).
The gain was led by LAFPP’s strong performance in the domestic and international equity markets including the developed and emerging markets, demonstrating returns over their benchmarks. LAFPP’s real estate investments also showed strong performance for the year.
LAFPP’s 13.01 percent return is well above the Fund’s discount rate of 7.75 percent, which is the long-term return required to meet current and future obligations for members. LAFPP’s 10-year investment return is 7.66 percent, while its 20-year return is 8.01 percent.
LAFPP has a long-term investment horizon and uses an asset allocation which encompasses a strategic long-term perspective of the capital markets.
Returns for real estate, private equity and some components of the inflation assets reflect market values through March 31, 2013 (not June 30, 2013). Final performance including the last quarter of the fiscal year will be available after asset valuations are completed.
LAFPP is one of the largest fire and police pension funds in the U.S. The retirement system administers retirement benefits for more than 25,000 current and retired safety employees for the City of Los Angeles. More information is available at About LAFPP.