Texas Teacher Retirement System, Austin, has earned a total of $940 million in securities lending revenue from the onset of the program in 2002 through Dec. 31, 2012.
In 2012, the pension fund had an average pool of lendable assets totaling $60.5 billion, the average utilization of those assets by borrowers throughout the year was 37%, and the retirement system's earnings from securities lending was $104.6 million last year, up 32% from 2011.
U.S. Treasury debt produced the highest securities revenue at $55.1 million in 2012, followed by U.S. equity at $28.3 million, and non-U.S. equity at $21.1 million.
Securities lending data for Texas TRS comes from a report from State Street Global Markets, a division of State Street Corp., the pension fund's master custodian. The report was prepared for this week's board of trustees meeting.
Separately, the market value of the TRS' assets rose 4.4% to $116.3 billion in the six months ended Feb. 28, halfway through the retirement system's fiscal year, which ends Aug. 31, according to a report from Brian Guthrie, executive director.
The pension fund's unfunded actuarial accrued liability rose to $27.4 billion as of Feb. 28 from $26.1 billion six months earlier, and the funding ratio fell 50 basis points to 81.4%, from 81.9% on Aug. 31. Recognition of investment losses from 2008 to 2009 caused the uptick in the unfunded actuarial accrued liability, Mr. Guthrie wrote in the report, noting that about $4 billion of the system's losses still are unrealized because of smoothing.
Mr. Guthrie said in an interview that plan assets as of Wednesday totaled $117.5 billion, matching the fund's previous high mark.
The Feb. 28 fiscal-year-to-date return of the pension fund was 6.12%, equivalent to 12.24% annualized, reported Mr. Guthrie.