Texas Teachers FY 2019 private equity returns come in below benchmarks

Teacher Retirement System of Texas last week reported private equity returns of 4.3 percent for the second quarter, and one-year returns of 10.7 percent as of June 30, below its benchmarks of 4.8 percent and 11.9 percent, respectively.

The $156.4 billion fund’s entire portfolio came in below its benchmarks as well, with returns coming in at 3.2 percent for the second quarter against a 3.4 percent benchmark and 6.4 percent for the year ending June 30 against a 6.7 percent benchmark.

As of June 30, Texas Teachers had a $22.8 billion private equity portfolio, making up 14.6 percent of its total asset allocation.

Texas Teachers is considering opening a Singapore office as it aims to build its footprint in Asia-Pacific, according to documents from the system’s July meeting. The system believes an office in Singapore would help improve access to private markets in the region and establish closer relationships with managers across Asia-Pacific, Buyouts previously reported.

Action Item: Read the report from Texas Teachers Sept. 19 Investment Committee Meeting here.