The Maryland State Retirement and Pension System reported a 3.5 percent return on its investments in the first quarter — on par with other large public funds in the U.S.

The fund's performance raised the assets of the system to $50.3 billion for the quarter ending Sept. 30, up $4 billion from a year ago. That's also an increase of $1.2 billion from the end of June.

By comparison, the average return for large public plans nationally was 3.55 percent, according to investment tracker Wilshire Trust Universe Comparison Service.

Maryland's performance was also not that far off from its neighbors. The Virginia Retirement System's $76 billion fund had a 3.1 percent return. The Pennsylvania State Employees’ Retirement System reported a 3.7 percent return for its $28 billion fund, and the D.C. Retirement Board's $7.7 billion fund saw a 4 percent return.

"The good news for Maryland is that its performance was finally average," said Jeff Hooke, a finance lecturer at the Johns Hopkins University Carey School of Business. "But the problem is it has been below average for the last 10 years."

A recent study from the Maryland Public Policy Institute found that Maryland's fund performed below its peer group during the 2017 fiscal year, missing out on another potential $1 billion. The fund has beaten its own 7.55 percent goal six times in the past decade.

A spokesman for the Maryland State Retirement and Pension System could not be reached for comment.

Maryland's fund tends to be more conservative than its peers by putting more money into alternative investments like hedge funds, Hooke said.

"The idea is you will get more returns with less risk, but it has not necessarily worked out for them," Hooke said. "The ones doing better are the ones that have more exposure to common stocks, in general. They have less exposure to alternative investments and are not paying high fees. High fees are dragging Maryland's returns."