Dallas Police & Fire Pension System returned 11.4% for the fiscal year ended Dec. 31, outpacing the assumed rate of return of 8.5%, confirmed spokeswoman Rebecca Shaw.
Private equity had the highest returns at 17%, but that was below the custom benchmark return of 18.3%. Global equity returned 16.7%, above the 16.1% MSCI ACWI index benchmark and global fixed income returned 16.6%, far surpassing the 4.3% Barclays Capital Global Aggregate Bond index benchmark. Global asset allocation strategies returned 10%, about four percentage points above the custom benchmark, while natural resources returned 6.4% and real estate, 2.8%, far below the custom benchmark returns of 11.8% and 8.5%, respectively.
Investment consultant NEPC reported the $3.3 billion pension fund finished in the top 1% of 10-year gross returns of all public pension plans with more than $1 billion in assets at 9% annualized for the period ended Dec. 31. The 10-year return is 8.5% net of fees. It has an annualized 30-year return of 10.1% for the period ended Dec. 31.
The plan ranks No. 1 among public pension plans in Texas over 20 years by the Texas Association of Public Employee Retirement Systems based on investment returns through Sept. 30.