Chicago Laborers returns -13.4% for fiscal year

Chicago Laborers' Annuity & Benefit Fund posted a net return of -13.4% for the fiscal year ended Dec. 31.

The $1 billion pension fund's return fell below its policy benchmark return of -10.6% for the period, according to an investment report on its website.

For the three, five and 10 years ended Dec. 31, the pension fund returned an annualized net 3.9%, 4.3% and 6.2%, respectively, below their respective benchmarks of 4.2%, 4.5% and 6.7%.

The pension fund had returned a net 12% for the fiscal year ended Dec. 31, 2021.

For the most recent year, the pension fund's negative return reflected a challenging market environment. For the year ended Dec. 31, the Russell 3000 index and Bloomberg U.S. Aggregate Bond index returned -19.2% and -13%, respectively.

The pension fund's latest investment report did not provide returns for all asset classes, but it did disclose that domestic equities returned a net -19.6% (below its -19.2% benchmark), and total fixed income returned a net -5.6% (above its benchmark return of -6.4%).

The investment report did not disclose how the returns will affect the pension fund's funding ratio. As of Dec. 31, 2021, the funding ratio was 43%, according to its latest actuarial valuation report.

As of Dec. 31, the pension fund's actual allocation was 44.5% total equities, 18.7% total fixed income, 13.5% real estate, 9.8% hedge funds, 8.6% private markets, 2.9% real assets and the rest in cash/other.

The target allocation is 50% total equities, 20% total fixed income, 10% each hedge funds and real estate, 7% private markets and 3% real assets.