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State pension fund reports 12.8 percent investment return for 2017 fiscal year

The Massachusetts state pension system added $7.7 billion in investment gains in the year ended June 30, for a 12.8 percent return, according to a spokesman for the fund’s manager.

The performance of the $67 billion retirement fund for teachers and public workers rebounded from a 1.9 percent gain, after expenses, in the prior year.

The result was slightly ahead of the fund’s internal benchmark and outperformed an 11.2 percent gain reported by the nation’s largest public pension fund, the California Public Employees’ Retirement System.

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Global stocks and private equity were the biggest contributors to the fund’s strong showing, up 20.6 percent and 19.3 percent respectively.

The system’s hedge fund holdings, which have been overhauled in recent years, also showed improvement, rising 9.3 percent, compared with 6.3 percent for their benchmark.

Beth Healy can be reached at beth.healy@globe.com. Follow her on Twitter @HealyBeth.