Texas Teacher Retirement System had the best 10-year annualized private equity returns among public pension funds for the end of fiscal year 2013, a report from the Private Equity Growth Capital Council said.
The $130.2 billion Austin-based retirement system led all public pension funds with more than $1 billion in assets, returning an annualized 18.2% for the 10 years ended June 30, 2013, according to the report published Wednesday.
In second place was the $60.7 billion Massachusetts Pension Reserves Investment Trust, Boston, which returned an annualized 17.8%, followed by the $63.8 billion Minnesota State Board of Investment, St. Paul, 16.2%; the $3.8 billion Houston Firefighters’ Relief & Retirement Fund, 15.8%; and the $20 billion San Francisco City & County Employees’ Retirement System, 15.6%.
Overall, private equity returned an annualized median 12.3% during the 10-year period among the 150 public defined benefit plans studied. On average, the asset class makes up 9.4% of those pension plans.
Of those 150 plans, CalPERS invests the most in dollars. The $294.2 billion California Public Employees’ Retirement System, Sacramento, has $32.3 billion in private equity. Following were the $188.3 billion California State Teachers’ Retirement System, West Sacramento, with $21.9 billion in private equity, and the $104 billion Washington State Investment Board, Olympia, with $16.2 billion.