Texas Teacher Retirement System's net returns topped those of the pension fund's benchmark for every period ended June 30, showed an investment report from Aon Hewitt, the Austin-based retirement system's consultant.
The pension fund's returns as of June 30 were 3.6% for three months (benchmark, 3.4%); one year, 12.9% (11.3%); three years, 6% (5.6%); five years, 8.8% (8.1%); 10 years, 5.4% (5.2%); and since inception on July 1, 1991, 8.7% (8.1%). Multiyear returns are annualized.
During the quarter ended June 30, the pension fund grew 2.9% to $142 billion with $889 million of net withdrawals counterbalanced by $5 billion of investment gains, according to the investment report.
Texas TRS' global equity allocation as of June 30 totaled 59.9% of plan assets; within that allocation, 17.6% was in U.S. equities; 15.9% non-U.S. developed markets equities, 12.5% private equity, 9.9% emerging markets equities and 4% directional hedge funds.
Real-return strategies accounted for 19.6% of the pension fund's total portfolio, with 12% real assets, 3.9% energy/natural resources/infrastructure, 3.6% Treasury inflation-protected bonds and 0.1% commodities.
The total allocation to the pension fund's stable value portfolio was 15.5%, with a breakdown of 7.8% U.S. long Treasury bonds; 3.9% stable value hedge funds, 2.7% absolute-return strategies and 1.1% cash.
The remaining 5% was allocated to risk-parity approaches.