Dallas Employees' Retirement Fund returned a net 9.08% return for the fiscal year ended Dec. 31, below its benchmark return of 10.3%, said materials prepared for Tuesday's board meeting.
Among the various asset classes, public real assets returned 23.07%; high-yield bonds, 14.25%; domestic equity, 13.38%; global low volatility, 8.3%; global equity, 5.52%; international equity, 4.89%; real estate, 4.83%; private equity, 4.26%; global fixed income, 3.89%; and managed short-term cash, 0.3%.
As of Dec. 31, the pension fund had an asset allocation of 15% each domestic equity and high-yield bonds; 14% each international equity and investment-grade fixed income; 10% low-volatility global equity; 9% master limited partnerships; 6% real estate; 5% each global equity, private equity and real estate investment trusts; and 2% cash.
For the three and five years ended Dec. 31, the $3.2 billion pension fund returned an annualized 4.52% and 8.82%, respectively, compared to its benchmark returns of 4.41% and 8.48%.
In November, Dallas voters approved a ballot initiative to help reduce the pension fund's long-term liabilities by roughly $2.15 billion over the next 30 years.
The initiative, which applies only to employees hired on or after Jan. 1, reduces cost-of-living adjustments and survivor benefits, raises the retirement age and discontinues a monthly health benefit supplement. The pension fund's total liabilities as of Dec. 31 could not be learned by press time.
A spokesman could not immediately provide additional information. Cheryl Alston, the pension fund's executive director, did not return a telephone call by press time.