On June 10, 2025, the value of FPIF’s investment portfolio surpassed $10 billion for the first time. Strong performance in June carried the portfolio to a fiscal year-end market value of $10.3 billion. For the fiscal year ending June 30, 2025, the portfolio earned a 13.3% return, exceeding the policy benchmark of 12.9% and significantly outperforming the Fund’s long-term actuarial assumption of 7.125%.
Looking beyond the one-year results, the Fund’s three-year annualized return stands at 12.0%, compared to a benchmark of 11.7%. This consistency highlights the Fund’s ability to capture long-term growth while maintaining strong risk-adjusted performance.
Strong Equity Gains Lead the Way
Equities were the primary driver of performance:
- U.S. Equity returned 16.0%, outpacing the Russell 3000 Index (+15.3%), fueled by large-cap technology and growth sectors.
- Non-U.S. Equity delivered 17.3%, closely aligned with global benchmarks, as international developed and emerging markets staged strong rallies.
- Emerging Markets Equity gained 14.3%, matching its benchmark, with particular strength in small-cap strategies.
Fixed Income Provides Stability
Despite moderating interest rates, fixed income delivered solid results:
- Total Fixed Income gained 7.0%, ahead of the Bloomberg U.S. Universal Index (+6.5%).
- Credit and Emerging Markets Debt posted 10.0%, in line with global benchmarks, supported by narrowing credit spreads.
Growth in Private Market Investments
FPIF has strategically expanded its alternatives portfolio, growing from $211.1 million in June 2024 to $814.1 million in June 2025—an increase of more than $600 million through a combination of OCIO partnerships and FPIF’s internally managed investments.