Illinois Teachers chalks up -1.2% fiscal-year return

Illinois Teachers' Retirement System, Springfield, produced a net -1.2% return in the fiscal year ended June 30, better than the -7.1% return of its benchmark, showed a performance report from RVK, the pension fund's consultant.

In comparison, the retirement system returned 25.5% in the year ended June 30, 2021, bringing the system's assets to a new high of $63.9 billion. Assets fell to $62.7 billion as of June 30.

The pension fund's annualized multiyear net returns topped those of its benchmark, with a three-year return of 7.6% (5.6% benchmark); five years, 7.3% (6.5%); seven years, 7% (6.6%); 10 years, 8.2% (7.9%); 20 years, 7.3% (7.2%)

The pension fund's actual asset allocation as of June 30 was 32.6% global public equity (long-term target 37%); 22.7% global fixed income, including private credit (26%); 17.8% real estate (16%); 16.3% private equity (15%); 7.2% diversifying strategies, including hedge funds and risk parity (4%); 1.8% other real assets (2%); and 1.6% short-term assets (0%).

With a 27.1% net return (benchmark 24%) in the year ended June 30, real estate led the asset class returns for the fiscal year, followed by 13.9% for other real assets (14.5%); 8.6% private equity (-11.3%); 7.5% diversifying strategies (4.2%); -6% global fixed income (-10.3%); and -15.8% global public equity (-16.5%).

TRS had $60.9 billion in assets as of Sept. 30.