Public plans that are members of the Texas Association of Public Employee Retirement Systems returned an average 10.6% for the year ended Sept. 30, beating an average actuarial assumption of 8.2%, according to a survey by the association.
The 56 retirement systems that responded to the survey held a combined $21.7 billion in assets a news release from the association indicated.
The retirement systems had average annualized returns of -1% for the three-year period, 4.7% for the five-year period, 4.8% for the 10-year period, 7.9% for the 15-year period and 8.9% for the 20-year period ended Sept. 30.
“The only thing we can attribute that (performance) to is the diversification of the assets and amount of risk they're taking,” TEXPERS Executive Director Max Patterson said in a telephone interview. “All of them use outside consultants and stayed with the consultants' recommendation that you have to believe in the market and the long-haul. Now they're reaping the benefits from it.”
The average asset allocation of the survey respondents was 28.3% fixed income, 26.9% U.S. equity, 19.3% international equity, 9.1% real estate, 6.4% private equity, and 10% in other investments.