Texas Teacher Retirement System extended by two years the contracts of the four investment consultants that advise the $128.2 billion pension fund.
Contracts were extended for 24 months ending Aug. 31, 2018, for Aon Hewitt, the board's investment consultant; Albourne Partners, hedge funds; Hamilton Lane Advisors, private equity; and The Townsend Group, real assets, said TRS spokesman Howard J. Goldman,Townsend Group, real assets, said TRS spokesman Howard J. Goldman, in an e-mail.
Trustees of the Austin-based pension fund approved a staff recommendation to renew the consultants' four-year contracts beyond their Aug. 31 expiration dates during a meeting Thursday.
Separately, net assets of the pension fund rose 1.2% to $128.2 billion in the quarter ended March 31, board meeting documents showed. The change in assets was fueled by investment earnings of $2.5 billion, which were offset by net withdrawals during the three-month period of $865 million.
Short-term performance of the TRS defined benefit plan for periods ended March 31 trailed its benchmark: three months, 2% (benchmark, 2.2%); and one year, -0.3% (-0.1%). Annualized returns over longer time periods, however, were above the pension fund's policy index: three years, 6.3% (6%); five years, 6.7% (6.6%); 10 years, 5.6% (5.4%); and since inception (July 1, 1991), 8.5% (8%).