Texas County posts 33.7% gain for year

The $40.7 billion Texas County & District Retirement System, Austin, returned a net 33.7% in the year ended June 30, surpassing its 31.1% benchmark return, a performance report showed.

In contrast, the $40.7 billion pension had a net return of -3.1% over the year ended June 30, 2020, trailing the benchmark return of -2.1%.

Annualized net returns of the fund in each reported period ended June 30 also topped those of the benchmark with an 11.3% return for the three-year period (benchmark, 10.7%); five years, 11.2% (10.5%); 10 years, 8.6% (7.6%); 20 years, 7.7% (7%); and 30 years, 8.3% (7.2%).

Net returns by asset class were led by private equity, 55.4%; equities, 42.7%; real assets, 32.3%; hedge funds, 23.9%; credit, 22.3%; investment-grade bonds, 1.5%; and cash, 0.1%.

Performance of TCDRS' distressed debt, direct lending, private equity and private real estate portfolios are lagged by one month, according to the report.

The system's broad target asset allocation is 29% credit, 25% each public equity and private equity, 10% real assets, 6% hedge funds, 5% investment-grade bonds and cash/cash equivalents. The actual allocation as of June 30 was 32.1% public equity, 23.9% credit, 21.7% private equity, 9.9% real assets, 8.9% hedge funds, 2.5% bonds and 1% cash.

The TCDRS report did not include benchmark returns by asset class in the performance report.

The system's fiscal year ends Dec. 31.