Texas Municipal Retirement System’s (TMRS) real estate portfolio missed its benchmark during the first half of 2020, according to a report by the $32bn (€27bn) pension fund’s investment consultant.
According to RVK, the real estate portfolio’s net return during the first quarter of the year was -2.14 compared with the 0.93 recorded by the NCREIF ODCE Index. The year-to-date return was -0.41 compared with the benchmark’s 2.44.
Over a one year period, TMRS missed the benchmark by 170 basis points.
However, for the three- and five-year performance, the pension fund recorded an 86 and 142 basis points increase respectively.
Retail and hotels, two of the property types that have been among the most affected by the outbreak of COVID-19, make up 10% and 3% of the pension fund’s $2.7bn real estate portfolio.
The pension fund real estate portfolio comprises 91% US assets, 6% in Europe and the balance in other international markets.
The TMRS real estate portfolio is split 66.4% in favour of core, 21.7% for value-add and 11.9% opportunistic real estate.
Texas Municipal did not respond to a request for comment.
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