Texas Teachers’ assets rise 3.7% in quarter

Texas Teacher Retirement System saw assets rise 3.7% to $119.7 billion in the quarter ended Sept. 30, according to meeting materials for Thursday's investment committee meeting at the pension fund's Austin headquarters.

Net growth of $3.8 billion came from $5.1 billion of investment gain in the three-month period, less $1.3 billion of net withdrawals, according to a performance report from Hewitt EnnisKnupp, TRS' consultant.

The pension fund outperformed its policy benchmark in all periods ended Sept. 30: quarter, 4.4% (benchmark, 4.2%); one year, 7.5% (benchmark, 6.9%); three years, 9.6% (benchmark, 9.4%); five years, 7.8% (benchmark, 7.4%); and 10 years, 7.4% (benchmark, 7.2%). Multiyear returns are annualized.

At their Thursday meeting, investment committee members learned that TRS' internal asset allocation group is gearing up for a new strategic asset allocation in 2014, according to a presentation by Mohan Balachandran, senior managing director, who heads the group.

Research and analysis will take place between December and June, and the board of trustees will be asked to approve a final asset allocation recommendation at its September meeting.