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Pension Funds

Louisiana Teachers chalks up 11.56% fiscal-year return

Louisiana Teachers' Retirement System, Baton Rouge, returned a net 11.56% for the fiscal year ended June 30, the $21 billion pension fund announced in a news release on Tuesday.

The net return well exceeded its 9.54% benchmark for the fiscal year. For the three, five and 10 years ended June 30, TRSL returned an annualized net 9.35%, 9.93% and 7.08%, respectively, topping the respective benchmarks of 8.27%, 9.02% and 7.02%. For the fiscal year ended June 30, 2017, the pension fund returned a net 15.93%. The pension fund has produced one of the highest returns among public plans each of the past two fiscal years.

The best-performing asset class for the fiscal year ended June 30 was domestic equities, which returned a net 16.76% (above its 14.78% benchmark), followed by alternative assets and real estate, which returned a net 13.38% (above its 12.2% benchmark). Other returns were: international developed markets equities, a net 12.25% (above its 6.84% benchmark); emerging markets equities, 6.74% (8.2%); international developed markets fixed income, 0.88% (1.36%); domestic fixed income, 0.17% (-0.4%); and emerging markets debt, -5.04% (-2.33%).

As of June 30, the actual asset allocation was 30% domestic equities; 13% each international developed markets equities and private equity/venture capital; 8% each domestic fixed income, emerging markets equities and real estate; 6% private market debt; 4% infrastructure/commodities/farmland; 3% each emerging markets debt, global high yield and international developed markets fixed income; and 1% global real estate investment trusts.