Austin Firefighters fund matches benchmark with 5.6% return for year ended June 30

Net returns of the Austin (Texas) Firefighters Relief & Retirement Fund met or exceeded those of the fund’s static benchmark for the year and multiyear periods ended June 30, a performance report from the $980 million fund showed.

In the year ended June 30, both the fund and its static benchmark returned a net 5.6%.

In comparison, the firemen’s fund returned a net 8.9% and the static benchmark, 7.9%, in the 12-month period ended June 30, 2018.

For longer time periods ended June 30, net annualized returns for the overall portfolio exceeded those of the benchmark. For three years, the total fund net return was 9.3%, vs. 8.7% for the static benchmark; five years, 6.3% (6%); and 10 years, 9% (8.9%).

The asset allocation of the fund as of June 30 was fixed income, 30.7%; international equity, 21.2%; private equity, 19.4%; domestic equity, 16.3%; real estate, 8.8%; natural resources, 2.6%; and cash, 1%.

The best-performing asset class in the 12 months ended June 30 was private equity with a 15.6% net return vs. 2.6% for the benchmark (both returns lag by one quarter), followed by fixed income, 7.7% (7.9%); real estate, 6.9% (6.5%); domestic equity, 5% (9%); international equity, -3.4% (1.3%); and natural resources, -10%, (-14.1%).