Texas County & District 1-year return trails benchmark

The net return of the $30.7 billion Texas County & District Retirement System was down 3.1% for the year ended June 30, a quarterly investment report showed.

The system's policy benchmark return was down 1.3% for the same period.

In contrast, Austin-based TCDRS returned a net 6.4% in the year ended June 30, 2019.

Over longer time periods ended June 30, annualized net returns were three years, 4.1% (benchmark, 4.2%); five years, 4.6% (4.4%); 10 years, 7.3% (6.5%); and 20 years, 6.4% (5.7%).

TCDRS' fiscal year ends on Dec. 31.

The best-performing asset class for the year ended June 30 was investment-grade bonds, which returned a net 9.7%, followed by private equity (2.3%); cash/cash equivalents (1.6%); and equities (0.1%).

Net returns of TCDRS' other asset classes were negative, with hedge funds down 1.9%, credit down 5.5%; and real assets down 19.3%.

Asset class benchmark information was not available. Returns for private market strategies lag by one quarter and will be available in September, TCDRS' report showed.

As of June 30, the actual allocation of the TCDRS portfolio was equities, 25.3%; credit, 23.3%; private equity, 17.4%; hedge funds, 12.6%; real assets, 8.6%; cash, 7.6%; and investment-grade bonds, 5.2%.