Texas Teacher Retirement System, Austin, returned a net 27.3% vs. 25.1% for its benchmark in the year ended June 30, an investment report presented at the system's investment committee meeting Thursday showed.
In contrast, the net return of the $193.1 billion defined benefit plan was 1.8% a year earlier.
Annualized net returns over the three-, five- and 10-year periods were flat or above those of its benchmark: 11.3% for three years, matching the benchmark; 11.2% for five years (benchmark, 10.7%); and 9% for 10 years (benchmark, 8.7%).
The system's broad asset allocation as of June 30 was 56.2% global equity; 22.6% stable value; 17.6% real return; 8% risk parity; 1.5% cash; and -5.9% leverage, the investment report showed.
Net returns by asset class for the year were led by global equity, which includes public and private equity, 44.8%, (benchmark, 44.4%); risk parity, 24.3%, (25.2%); real return, including infrastructure, real estate, energy and natural resources, 11.5%, (5%); and stable value, -1.3%, (-5.1%).
Separately, TRS reported to trustees during the committee meeting that the system's assets rose 7% in the quarter ended June 30 from $180.5 billion as of March 31, driven by $13.6 billion of investment return less $1.1 billion of net withdrawals.
Texas Teachers' fiscal-year end is Aug. 31.