Texas ERS reports 9.9% total fund return for FY 2018

The $37.8 billion Employees Retirement System of Texas has reported a 9.9 percent total fund return for fiscal year 2018, above its 7.6 percent benchmark, according to the pension fund’s quarterly performance review in a webcast. The total fund outperformed its benchmark by 226 basis points during the trailing 12-month period ending June 30, according to the webcast.

The performance was driven by private equity and private real estate. The private equity and real assets components contributed 83 basis points and 41 basis points, respectively. Positively, every asset class generated alpha in the last 12 month period, according to the webcast.

Roughly $480 million of alpha was generated in the fiscal year to date period, the webcast reported.

“It’s been a great year of absolute returns as well as risk-adjusted returns,” stated Craig Hester, a member of the ERS Board.