Illinois Teachers' Fund Climbs to Record

December 10, 2007 ( - The assets of the Teachers' Retirement System of the State of Illinois (TRS) rose to a record $42.3 billion last quarter.

TRS reported a quarterly gain of 2.31% before fees for the quarter ending September 30, 2007, as well as annualized returns of 17.94% for the one-year time period, 15.01% for the three-year period, 15.20% for the five-year period, and 9.14% over 10 years.   According to a press release, the fund said the investment performance placed TRS in the top 20 percent among other large public pension systems during all the reporting periods.   However, the system remains significantly underfunded, according to reported projections.

Also Approved

Last week the TRS Board of Trustees also approved the following private equity commitments:

  • $100 million to Oak Tree Capital Management Fund VII b, a distressed debt fund
  • $100 million to Riverstone Global Energy and Power Fund IV, a buyout fund
  • $50 million to Pine Brook Capital Partners, a private equity fund focused on the energy and financial services sectors

The TRS Board of Trustees also approved an additional $50 million mandate to KBS Realty Advisors, a separate account advisor focused on the acquisition of office space. The market value of TRS assets under management by KBS totaled $460 million as of June 30, 2007.

Finally, TRS staff reported on the successful funding of the System’s initial allocation to separate 130/30 mandates. In October, the Board hired Analytic Investors and J P Morgan to each manage $500 million. The strategy is designed to further diversify the domestic equity asset class.

TRS provides retirement, disability, and death benefits to teachers and administrators at Illinois public elementary and secondary schools outside the city of Chicago. The System serves 344,432 members.