Teachers' Retirement System of Louisiana, Baton Rouge, has properly monitored its investment managers, consultant and custodian bank, the state legislative auditor concluded in a report to be issued Monday. The audit also found that the pension fund has returned 9.6% on its investments over the past 10 years, exceeding the retirement system's 8.25% assumed rate of return, confirmed Bonita B. Brown, director of the $12.4 billion plan. Ms. Brown said the audit also found 11 of the fund's 14 asset classes outperformed their relevant benchmarks over the "long term."
The audit is part of a 2004 state Senate resolution to examine investment policies and relationships within state retirement systems.
The auditor recommended that the system's written investment policy implement policies for formal reviews of custodian Mellon Bank at least annually, Ms. Brown said. She noted that fund officials have regularly reviewed the custodian.
Albert "Robbie" Robinson, first assistant legislative auditor and director of financial audit division, declined to comment on the matter until the full report is issued Monday.