Texas Municipal Retirement posts -2.9% return for year ended June 30

Texas Municipal Retirement System, Austin, returned a net -2.9% in the year ended June 30, topping the -5.3% return of its benchmark, an investment report from consultant RVK showed.

In contrast, the $34.8 billion retirement system returned a net 20.3% return in the year ended June 30, 2021.

Annualized net returns of the plan were higher than those of the fund's benchmark over the three, five, seven and 10 years ended June 30, with returns of 5.5%, (benchmark, 4.8%); 5.9% (5.3%); 5.9% (5.4%); and 6.4% (6%), respectively.

Texas Municipal's best-performing asset class for the year was private equity, which returned 31.8% (benchmark, 6.3%) followed by real estate, 26.8% (27.3%); cash, 0.3% (0.2%); hedge funds, -0.7% (3.9%); non-core fixed income, -0.7% (-6%); other public and private markets, -4.8% (-6.6%); core fixed income, -10.4% (-10.3%); and total equity, -17.2% (-16.5%).

As of June 30, Texas Municipal's actual asset allocation was 32.8% total equity (target 35%); 20.6% non-core fixed income (20%); 12.5% real estate (12%); 11% other public and private markets (12%); 9.8% private equity (10%); 7.8% hedge funds (5%); 5% core fixed income; and 0.5% cash (0%).

The defined benefit plan's fiscal year end is Dec. 31.