For the most recent fiscal year, TCRS’ return just topped the median return of 9.9% among the 71 U.S. public pension funds whose returns have been tracked by Pensions & Investments as of Sept. 27.
By asset class, the top performer was domestic equities, which posted a gross return of 23.8% for the fiscal year ended June 30 (above the benchmark return of 23.5%); followed by emerging markets equities at a gross 15.2% (below the 20.6% benchmark); strategic lending, 11.4% (10.8%); international developed markets equities, 15.2% (20.6%); Canadian equities, 7.5% (7.5%); private equity, 5.8% (5.5%); short-term investments, 2.8% (5.6%); domestic fixed income, 0.6% (0.2%); and real estate, -5.7% (-11.3%).
As of June 30, the pension fund’s actual allocation was 29.4% domestic equities, 17.6% domestic fixed income, 12.9% private equity, 11.9% international developed markets equities, 11.3% strategic lending, 10.2% real estate, 3.9% emerging markets equities, 1.5% Canadian equities and the rest in short-term investments.
The target allocation is 31% domestic equities; 20% domestic fixed income; 12% international developed markets equities; 10% each private equity, real estate and strategic lending; 4% emerging markets equities; 2% Canadian equities; and 1% short-term investments.
