Calendar year 2022 was a challenging year for the financial markets as inflationary pressure and higher interest rates brought fears of a future economic recession. Global equities lost over 18% in value over the year while traditional fixed income (normally a diversifier for equities) also lost over 13% in value (a traditional 60/40 mix was down 16.4% for the year).
MPERS’ portfolio performed extremely well considering the environment, limiting losses to approximately 2% for the year and outperforming the policy benchmark by 8.65%. MPERS’ overall return profile continues to rank in the top 1% of the peer universe across all measurement periods. The portfolio has been very successful in limiting losses in down markets while keeping up with markets during the good times.
Fiscal year to date (July 1, 2022 to February 7, 2023) MPERS’ investment return was 6.7%
