Texas Employees Retirement System, Austin, produced a preliminary net return of 0.3% for the year ended June 30 compared to 3.2% for the policy benchmark, an investment report showed.
Texas ERS returned a net 5.3% vs. 6.1% for the policy benchmark as of June 30, 2019.
Preliminary net annualized returns for the $27.4 billion defined benefit plan as of June 30 were 5.1% for three years, (benchmark, 5.6%); five years, 5.4% (6%); seven years, 6.6% (6.8%); and 10 years, 7.8% (7.9%).
The system's actual asset allocation as of the end of June was public equity, 38.8%; private equity, 15%; fixed income/rates, 12.7%; global credit, 12.5%; private real estate, 8.6%; hedge funds, 4.1%; infrastructure, 3.7%; public real estate, 2.8%; cash, 1.3%; and emerging hedge funds, 0.5%.
Asset class returns for the year ended June 30 were led by the system’s infrastructure portfolio which returned 8.2%, followed by fixed income/rates, 7.2%; hedge funds, 3.7%; private real estate, 2.7%; cash, 1.2%; global public equity, flat; private equity, -4.6%; global credit, -7.1%; and global public real estate -14%.
Asset class returns for the year ended June 30 were not available. Texas ERS' fiscal year ends Aug. 31. The system's net performance as of June 30 is preliminary because returns of the fund's private equity, global credit, private real estate, infrastructure and hedge fund portfolios were not available as of June 30.