TRS returns 2.31 percent for Q1 2008

The Teachers’ Retirement System of the State of Illinois reported 2.31 percent returns for the first quarter of its 2008 fiscal year, a number which does not take into account private markets returns. Separately, the pension approved three new private equity commitments.

The Teachers’ Retirement System of the State of Illinois reported 2.31 percent returns before fees for the first quarter of its 2008 fiscal year, which ended 30 September. The gains were down from the 3.78 percent return the fund generated during the same quarter last year.

The return was significantly lower than the 19.6 percent return TRS reported for the fiscal year ended 30 June. But a TRS spokeswoman said first quarter numbers are “fairly misleading”, because private market returns, including private equity and real estate, have not yet been evaluated and appraised, and therefore do not contribute to the total fund returns.

On Friday the pension fund approved three new allocations: $100 million (€68 million) to Oak Tree Capital Management’s latest distressed debt fund, $100 million to Riverstone Global Energy and Power Fund IV and $50 million to energy- and financial services-focussed fund Pine Brook Capital Partners.

In the past TRS has invested with Apollo Management, The Carlyle Group, Providence Equity Partners, Warburg Pincus and Silver Lake Partners, among others.

TRS’ first quarter returns raise the value of its portfolio to $42.3 million. The fund currently allocates 17.5 percent of its portfolio to alternatives, and targets an 8 percent allocation for private equity.