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A BILL TO BE ENTITLED
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AN ACT
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relating to the investment of assets under the management and |
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control of the Teacher Retirement System of Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 825.301, Government Code, is amended by |
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amending Subsection (e) and adding Subsections (f), (g), and (h) to |
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read as follows: |
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(e) The board of trustees shall develop a written investment |
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strategy [objectives] concerning the investment of the assets of |
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the retirement system. The strategy must provide [objectives may
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address] desired rates of return by asset class, risks involved, |
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investment time frames, and any other relevant considerations. |
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(f) In awarding investment contracts to private |
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professional investment managers under Subsection (a-2) or in |
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otherwise seeking or acquiring private financial services, the |
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board of trustees shall: |
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(1) make a good faith effort to award contracts to or |
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to seek or acquire services from qualified emerging fund managers; |
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and |
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(2) adhere to a standards-based statewide procurement |
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process in awarding each contract. |
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(g) For purposes of Subsection (f): |
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(1) "Emerging fund manager" means a private |
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professional investment manager that manages assets of not more |
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than $5 billion. |
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(2) "Private financial services" includes pension |
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fund management, consulting, investment advising, brokerage |
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services, hedge fund management, private equity fund management, |
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and real estate investment. |
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(h) The board of trustees shall submit a report not later |
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than the 25th day of the month following the end of each fiscal year |
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to the governor, the lieutenant governor, the speaker of the house |
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of representatives, the executive director of the State Pension |
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Review Board, the appropriate oversight committees of the house and |
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senate, and the Legislative Budget Board. The report must include |
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the following: |
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(1) the current end-of-fiscal-year market value of the |
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trust fund; |
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(2) the asset allocations of the trust fund expressed |
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in percentages of stocks, fixed income, cash, private equity, hedge |
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funds, real estate, or other financial investments; |
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(3) the investment performance of the trust fund |
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utilizing accepted industry measurement standards, by asset class |
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and by investment manager; and |
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(4) the amount of investment fees, by asset class and |
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by external investment manager. |
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SECTION 2. The first report required by Section 825.301(h), |
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Government Code, as added by this Act, must be submitted by the |
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board of trustees of the Teacher Retirement System of Texas not |
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later than December 31, 2011. |
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SECTION 3. This Act takes effect September 1, 2011. |