(Bloomberg) -- New York City's five pensions beat their investment target over the past fiscal year, propelled by a record-breaking US stock market. Levine estimates it will reduce the city's pension contributions by about $6.3 billion over the next five years. The city's private equity and private real estate assets returned 7.2% and 4.5% respectively. Levine said private markets investments diversify the pensions' portfolio and limit potential losses when market prices drop. Stocks make up about 43% of the pensions' assets, public fixed income and high-yield bonds comprise around 31% and the remainder is in private market alternatives and cash, according to the release.