A lengthy study of in-house management at the $50 billion Teacher Retirement System of Texas, Austin, recommends the fund use outside managers for small-cap stocks. The report, from Independent Fiduciary Services, also suggests the board consider first-time investments in private equity and emerging markets equity, and that both be managed externally.
On the whole, the study concluded the fund's internal money management is sound. The final report was submitted to the Legislative Audit Committee this week. The study had been ordered last year by the Legislature.