The Teacher Retirement System of Texas reported a 12.9 percent net return for the fiscal year ending June 30, 2017, according to a report from Aon Hewitt, the retirement system’s consultant.
As of June 30, the pension fund’s returns were 3.6 percent for three months, with a benchmark of 3.4 percent; one year, 12.9 percent (benchmark, 11.3 percent); three years, 6 percent (benchmark, 5.6 percent); five years, 8.8 percent (benchmark, 8.1 percent); and 10 years, 5.4 percent (benchmark, 5.2 percent).
Over the last one-year period, the pension fund has seen roughly 162 basis points of alpha generation through the asset classes, according to the report. The drivers of that are due to 45 basis points of asset allocation decisions and 112 basis points being driven by managers outperforming their benchmark.
The pension fund also grew 2.9 percent to $142 billion with $889 million of net withdrawals offset by $5 billion of investment gains, according to the report.
