Texas Teacher Retirement System, Austin, returned a net 9% for the year ended June 30.
The $203.7 billion pension fund’s return for the period well exceeded its policy benchmark of 5.7%, according to a performance report on its website.
Jase Auby, chief investment officer, said in a Sept. 26 interview the 3.3-percentage-point difference between the return and benchmark represented a “record alpha” for one-year performance results ended June 30. The pension fund’s fiscal year ended on Aug. 31.
For the three, five and 10 years ended June 30, the pension fund returned an annualized net 3.5%, 7.5% and 6.4%, respectively, above the respective benchmarks of 1.7%, 6.4% and 6.4%.
TRS had returned a net 4% for the year ended June 30, 2023.
By asset class, the top performer was domestic equities, which returned a net 25.7% for the year ended June 30 (above the benchmark return of 23.3%), followed by emerging markets equities at a net 16.5% (above the 15.5% benchmark); absolute return, 15.4% (9.9%); international developed markets equities, 14.6% (11%); stable value hedge funds, 12.4% (6.7%); energy, natural resources and infrastructure, 11.8% (6.7%); risk parity, 10.5% (8.4%); private equity, 8.7% (6.3%); commodities, 1.1% (15%); and real estate, -5.5% (-12%).
As of June 30, the actual allocation was 16.9% domestic equities; 16.5% private equity; 14.4% real estate; 13.6% government bonds; 11.9% international developed markets equities; 8.8% emerging markets equities; 7.2% risk parity; 6.8% energy, natural resources and infrastructure; 4.9% stable value hedge funds; 3.6% absolute return; 2.3% cash; 0.1% commodities and -7% asset allocation leverage.
