Kentucky Teachers chalks up 12.3% gross return in fiscal 2024

The Retirement Annuity Trust of The Kentucky Teachers' Retirement System, Frankfort, delivered a gross return of 12.3% for the fiscal year ended June 30, based on preliminary figures, after posting a 10.6% gross return in fiscal 2023.

For the three-, five- and 10-year periods ended June 30, 2024, TRS returned a gross annualized 3.5%, 8.8% and 8%, respectively, said a news release issued on Aug. 22.

According to an investment committee report, the fiscal 2024 return fell below the benchmark return of 13.8%.

For the three-, five- and 10-year periods, the corresponding benchmark returns were 4.9%, 9.2% and 8.1%, respectively.

The $25.8 billion pension fund’s actual allocation as of June 30 was 40.3% domestic equities (target 38%); 19.9% international equities (21%); 13.3% fixed income (15%); 10.7% additional categories (10%); 8.1% alternative investments (7%); 6.6% real estate (7%); and 1.1% cash (1%).

“Additional categories” include high-yield bonds and private credit, among other assets.

By asset class, the top 1-year performers were domestic equity (22.5% gross return); additional categories (9.7%); international equity (8.6%); alternative investments (7.8%); cash (5.7%); and fixed income (3.5%).

Real estate was the only asset class incurring a loss, declining 5.1%.