Investments in the state’s largest pension fund grew by 2.1 percent last quarter, enough to lift its assets to an all-time high of $11.9 billion.

In a quarter that was marked by political discord from the presidential election and ensuing fiscal cliff, the Employees’ Retirement System portfolio grew in the fund’s fiscal second quarter that ended Dec. 31. For the 2012 calendar year, the fund rose 14 percent.

The pension fund provides retirement, disability and survivor benefits to 113,282 active, retired and inactive state and county employees.

The ERS’ return last quarter beat its policy benchmark — consisting of various indexes — of 2 percent but trailed the median peer return of 2.2 percent. The median fund encompasses 30 public funds that have assets greater than $1 billion.

International equities were the best performers in the ERS portfolio last quarter as they rose 6.5 percent. Total fixed income, which includes both domestic and international holdings, edged up 1.5 percent. Domestic equities slipped 0.1 percent.

In other categories, private equity gained 2.7 percent; real estate, which is reported on a one-quarter lag, increased 1.7 percent; inflation-adjusted returns linked to bonds and timber rose 1.6 percent; and covered option calls (equities with downside protection) fell 2.1 percent.