For the fiscal year ended June 30, 2026, FPIF delivered a preliminary pre-audit return of 17.1%, surpassing the Fund's policy benchmark return of 16.0% and substantially exceeding the long-term actuarial assumption of 7.125%.
The Fund's success extends beyond a single year. Over the most recent three-year period, FPIF achieved an annualized return of 14.4%, compared with 13.7% for the benchmark. This sustained performance underscores the value of the Fund's diversified investment approach and long-term focus.
Equity Markets Drive Strong Results
Global equity markets were the largest contributor to fiscal year performance, with gains across both domestic and international allocations.
- U.S. Equity returned 22.7%, closely matching the Russell 3000 Index return of 22.8%, as continued strength in technology and growth-oriented companies supported market returns.
- Non-U.S. Equity gained 30.6%, exceeding the MSCI ACWI ex USA IMI Index return of 26.6%.
- Emerging Markets Equity was a standout performer, returning 57.3% and significantly outperforming the MSCI Emerging Markets IMI Index return of 40.3%. Strong security selection and favorable market conditions contributed to the exceptional result.
Fixed Income Continues to Add Value
The Fund's fixed income portfolio provided stability while also generating returns in excess of benchmark expectations.
- Total Fixed Income returned 4.9%, outperforming the Bloomberg U.S. Universal Index return of 4.2%.
- Credit and Emerging Markets Debt returned 13.9%, ahead of the benchmark return of 11.8%, driven largely by strong results within the Emerging Markets Debt allocation.
While fixed income serves an important risk-management role within the portfolio, the asset class also contributed meaningfully to overall Fund performance during the year.
Growth in Private Market Investments
FPIF has strategically expanded its alternatives portfolio, growing from $814.1 million in June 2025 to $1.368 billion as of June 2026—an increase of more than $500 million through a combination of OCIO partnerships and FPIF’s internally managed investments.
During this period, real estate holdings increased to $732.9. million, while infrastructure reached $192.6million, private credit grew to $332.0 million, and private equity totaled $111.1 million.