Texas Teachers System Returns 6.4%, Misses Benchmark

The $156.4 billion Teachers Retirement System of Texas (TRS) returned 3.2% for the second quarter, and 6.4% for the 12 months ending June 30, missing its benchmark returns of 3.4% and 6.7% respectively.

However, the system also reported three-, five-, and 10-year returns of 9.5%, 6.7%, and 9.9% respectively, which beat its benchmark’s returns of 8.8%, 6.4%, and 9.3% over the same time periods.

“Global equities continued to rally off a strong first quarter with optimistic trade talks and a looming US rate cute helping boost returns,” TRS CIO Jerry Albright wrote in a report that was presented at a Sept. 19 meeting of TRS’ investment management committee. “The US nominal yield curve shifted downwards over the quarter with yields falling across all maturities, resulting in the strong returns shown for the stable value and risk parity components.”

Private equity ,returned 10.7% for the year ended June 30, however, this was below the private equity benchmark return of 11.9%. Public equity returned 3.5% during the same time period, below its benchmark return of 4.5%. Directional hedge funds returned 2.1%, beating thebenchmark by a full percentage point.

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For the 12 months ended June 30, the top-performing asset class for the system’s stable value portfolio weretreasuries, which returned 12.7% and beat thebenchmark return of 12.3%. Absolute return strategies earned 6.8% for the 12 months ended June 30, easily surpassing theirbenchmark’s return of 4.6%. Stable value hedge funds returned 2.2%, just beating its benchmark return of 2.1%.

Tags: Pension, Returns, Texas, Texas Teacher Retirement System (TRS)

More than 600 companies have adopted the “proxy access” policy of New York City’s “boardroom accountability” initiative since its 2014 launch, according to Comptroller Scott Stringer’s office.

The targeted companies, which include more than 71% of the S&P 500, gives large, long-term investors like the city’s pension funds, the ability to nominate directors to company boards. It’s also a bid to increase so-called corporate responsibility.

By Stringer’s reckoning, the companies have seen changes in board diversity, their climate change actions, and how they treat their workers since complying with New York City’s guidelines.

The proxy access campaign gives new clout to big public pension funds such as the city’s five pension funds (Employees’ Retirement System, Teachers’ Retirement System, Fire Pension Fund, Police Pension Fund, and the Board of Education Retirement System.

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More than 35 companies that Comptroller Stringer’s office specifically targeted have adopted the measure in the past year. One of which was streaming giant Netflix, which Stringer’s office labeled as one of its “persistent hold-outs.” Proxy access had been getting a majority vote for four consecutive years in annual shareholder meetings before the company buckled.

“Corporations have been in the business of raising barriers, shutting blinds, and avoiding accountability for far too long,” Stringer said. “Proxy access gives us the leverage to flip that script, and break open the insular systems which have enabled excessive CEO pay, dismal levels of boardroom diversity, and inaction on climate change.”

New York State Comptroller Calls Out 4 More Companies on Board Diversity

New York City Leads Anti-Carbon Coalition of Big Funds

Tags: Comptroller Scott Stringer, New York City, Pension, Proxy Access