SPRINGFIELD, IL – Teachers’ Retirement System closed out a challenging 2020, dominated by the economic upheaval of the COVID-19 pandemic, with a positive 7.9 percent investment return and a $57.2 billion portfolio – the largest balance in the System’s 82-year history.
“Forethought and careful planning helped TRS successfully navigate the economic perils and uncertainties related to the pandemic,” said TRS Acting Executive Director Stan Rupnik. “The System’s strategic focus remains centered on a prudent, long-term allocation of assets to manage investment risk, protect assets during economic uncertainty and be poised to take advantage of economic growth possibilities.”
At the end of calendar year 2020, the portfolio balance of $57.2 billion was a 17.9 percent rebound in asset value compared to the low point during the early months of the pandemic.
The System’s positive 7.9 percent investment return at the end of calendar year 2020 was due to strong performance between July and December. Between July and December of 2020, the TRS investment return was a positive 12.2 percent.
TRS maintains a focus on steady, long-term investment returns. The System recognizes that the majority of its members maintain relationships with TRS for decades. Even with the effects of the coronavirus pandemic, the TRS long-term investment returns continued to exceed the System’s long-term assumed investment return of 7 percent. The 40-year return for TRS at the end of calendar year 2020 was 9.3 percent.
During its regularly-scheduled February meeting, the Board of Trustees reviewed the following investment actions:
- Within the $15.7 billion Global Income Portfolio:
- An additional commitment of $50 million to Northern Shipping Funds, of Stamford, Connecticut. Northern Shipping currently administers $125 million in TRS assets.
- Within the System’s $7.5 billion Private Equity Portfolio:
- The commitment of $400 million to Adams Street Partners, of Chicago. Adams Street is a new investment relationship for TRS.
- The commitment of $100 million to Charlesbank Capital Partners, of Boston, Massachusetts. Charlesbank currently administers $12.5 million in TRS assets.
- The commitment of $50 million to Grain Management, of Sarasota, Florida. Grain currently administers $73.7 million in TRS assets.
- The commitment of $50 million to Insight Partners, of New York, New York. Insight currently administers $216.6 million in TRS assets.
- The commitment of $50 million to Mill Point Capital, of New York, New York. This is a new investment relationship for TRS.
- The commitment of $36 million to Scale Venture Partners, of Foster City, California. Scale currently administers $63 million in TRS assets.
- Within the System’s $8.6 billion Real Assets Portfolio:
- The commitment of up to $100 million to Brookfield Asset Management, of New York, New York. Brookfield currently administers $150 million in TRS assets.
- Within the System’s $20.2 billion Public Equity Portfolio:
- The funding of a $300 million emerging markets small capitalization strategy managed by Acadian Asset Management, of Boston, Massachusetts. Acadian currently administers $1.2 billion in TRS assets.
- The commitment of $204 million to RhumbLine Advisors, of Boston, Massachusetts. RhumbLine currently administers $7.1 billion in TRS assets.
- The termination of a $204 million small/mid capitalization value mandate managed by LSV Asset Management, of Chicago. LSV continues to administer $2.1 billion in TRS assets.
- The termination of a $33 million small capitalization strategy managed by Matarin Capital Management, of New York, New York.
- The termination of a $562 million MSCI multi-factor large capitalization strategy administered by RhumbLine Advisors, of Boston, Massachusetts. RhumbLine currently administers $7.1 billion in TRS assets.
- The termination of a $322 million emerging markets small capitalization strategy managed by Dimensional Fund Advisors, of Austin, Texas.
About Teachers’ Retirement System
The Teachers’ Retirement System of the State of Illinois is the 40th largest pension system in the United States, and provides retirement, disability and survivor benefits to teachers, administrators and other public school personnel employed outside of Chicago. The System serves 427,000 members and had assets of $57.2 billion as of December 31, 2020.
