Texas County & District manages 3.1% return

Texas County & District Retirement System, Austin, returned a net 3.1% in the year ended June 30, strongly outperforming the -0.4% return of its policy benchmark, a performance report showed.

In contrast, the $41.7 billion plan returned a net 33.7% in the year ended June 30, 2021.

Annualized net returns for each reported period ended June 30 also topped those of the benchmark, with 10.2% for the three-year period (benchmark, 8.5%); five years, 9.2% (7.9%); 10 years, 8.9% (7.6%); 20 years, 7.8% (6.9%); and 30 years, 7.8% (6.7%).

Net returns by broad asset class for the year ended June 30 were led by private equity at 28.4%; real assets, 13.3%; credit, 6.9%; cash and cash equivalents, 0.1%; hedge funds, -3.1%; investment-grade bonds, -10.5%; and pubic equities, -18.4%.

Performance of the system's distresses debt, direct lending, private equity and private real estate portfolios are lagged by one quarter, according to the report.

The system's broad target asset allocation is 29% credit; 25% each public and private equity; 10% real assets; 6% hedge funds; 3% investment-grade bonds; and 2% cash and cash equivalents.

The actual allocation of the plan as of June 30 was 27.6% private equity, 27% credit, 24.2% public equity, 9.9% real assets, 6.4% hedge funds, 2.6% cash and equivalents and 2.3% investment-grade bonds.

TCDRS' fiscal year ends Dec. 31.