TRS of Texas Reports Record Earnings

June 18, 2010 ( - The Teacher Retirement System of Texas (TRS) Pension Fund ended the first quarter with a market value of $96.7 billion after producing an investment gain of 35% -- or $25 billion -- over the previous 12 months.

A TRS news release said both the 35% return and the investment gain were all-time TRS records for the period, and the advance erased most of the decline produced during the previous severe financial downturn.   

During the period, the fund’s global equity portfolio advanced by more than 53%. Overall, the fund outperformed general market returns by approximately 2.5%, or approximately $2 billion.   

TRS Chief Investment Officer Britt Harris attributed the success to several factors. “The period just prior to the recent gains tested the resolve of the TRS investment team, our board and that of our members,” he stated, according to the news release.   

Harris also attributed the fund’s success to its investment organization and noted that the fund now has a more highly developed capability to manage long-term risks and capture unique investment opportunities when they arise. He also highlighted how the past few years have demonstrated that effective long-term investing requires discipline, prudent diversification, emotional stability, and hard work.  

TRS delivers retirement and related benefits authorized by the Texas Legislature to nearly 1.3 million public education and higher education employees and retirees, and manages the $96.7 billion trust fund established to finance member benefits.