Texas County & District Retirement System, Austin, returned a net 6.4% for the year ended June 30, according to a quarterly investment report posted on the pension fund's website.
The $28.3 billion pension fund's preliminary one-year return exceeded its policy benchmark return of 5.7%. For the three, five and 10 years ended June 30, the pension fund returned an annualized net 9.5%, 5.9% and 9.2%, respectively, ahead of their respective benchmarks of 8.7%, 5.1% and 8.3%. TCDRS' fiscal year ends Dec. 31.
The best-performing asset class for the year ended June 30 was real estate investment trusts, which returned a net 13.5%, followed by global equities at a net 12% and domestic equities, net 9%.
Investment-grade fixed income returned a net 7.7%, followed by strategic credit, net 5.5%; hedge funds, net 3.4%; emerging markets equities, net 2.5%; master limited partnerships, net 1%; and international developed markets equities, net 0.2%.
Asset class benchmark data were not available. Returns for direct lending, distressed debt, private equity and private real estate lag by one quarter and will be disclosed in September, the report said.
As of June 30, the actual allocation was 15.7% hedge funds, 15.2% private equity, 14.3% domestic equities, 10.9% strategic credit, 8.9% international developed markets equities, 6.3% each direct lending and emerging markets equities, 5.5% investment-grade fixed income, 4.4% MLPs, 3.5% cash and cash equivalents, 2.6% private real estate, 2.5% REITs, 2.4% global equities and 1.5% distressed debt.
