The Austin Police Retirement System delivered an investment return of 11.50%, net of fees, for calendar year 2023, exceeding the System’s investment return assumption of 7.25%. These gains raised the total assets of the System to over $1.015 billion. The 2023 returns also raised the System’s 5-Year investment return average to 9.40%.
Overall, during the 2023 calendar year, US equity markets posted their strongest performance since 2021. The large-cap S&P 500 Index finished 2023 with an exceptional 26.3% return. International markets also reverted from their poor performance of the year prior. The MSCI EAFE Index was the best international index performer, returning 18.2%, while the MSCI Emerging Markets Index added a more tempered, but still solid, 9.8%. Bond markets were broadly higher for the year. Investment-grade corporate bonds were the best-performing sector of the US Aggregate Index and gained 8.5% for the year. Treasuries lagged at 4.1% during the year but were still a welcome relief from 2022’s negative bond market results. The bellwether fixed income benchmark, the Bloomberg US Aggregate Index, climbed 5.5% in 2023.
APRS continues to position its portfolio for long term sustainability. The Board’s commitment to investing with high-quality, institutional investors has well positioned the System with the opportunity to achieve its investment return assumption. For more detailed information regarding APRS’s investment portfolio, please visit our website at: https://ausprs.org/publications/quarterly-investment-reports/.