Teacher Retirement System of Texas (TRS)

The meeting focused on the performance of the Investment Management Division, specifically addressing recent market volatility and its impact on asset allocation strategies. The Investment Management Committee reviewed the First Quarter 2025 performance, noting relative outperformance driven by global equity and ENRI asset classes despite headwinds in real estate. The committee discussed the annual review of external private markets, including the roles and strategies of the ENRI, private equity, and real estate portfolios. Additionally, there was an update on the use of AI in private markets, focusing on due diligence, document summarization, and improving data synthesis for investment analysis.

The agenda includes a Chief Investment Officer update covering talent management, recent accomplishments, notices, awards, and upcoming events. Additionally, the meeting will feature a discussion on the first quarter performance review and an annual review of external private markets.

The board reviewed administrative and operational reports, including an update on the 89th legislative session and the quarterly ombudsman's report. Key actions included the acceptance of the procurement and contracting report, the selection of a pension fund actuarial consulting services provider, and the approval of a new contract for the board investment consultant. The board also heard reports from its Benefits, Investment Management, Governance, Budget, and Audit committees, resulting in the adoption of various resolutions regarding medical board appointments, premium rate changes for benefit plans, amendments to administrative rules, and the fiscal year 2026 administrative operations budgets.

The board discussed key administrative and operational matters including the Executive Director's report and an overview of the proposed 2027-2031 Strategic Plan. The agenda included a review of the TRS Experience Study findings and recommendations, the CIO update, and an annual review of the Emerging Manager Program. Additionally, the Board received the Ombudsman's Annual Report, a performance review of TRS-Care and TRS-ActiveCare health plans, and considered the selection of Health Plan Administrators. Other topics included regional office lease considerations, updates on data governance, security, the TEAM program, and information regarding artificial intelligence strategy, implementation, governance, and risk assurance.

The board meeting agenda includes an overview of the Fiscal Year 2027-31 Strategic Plan, a review of TRS Experience Study findings and recommendations, and an update from the Chief Investment Officer. Other key topics include the Emerging Manager Program review, the Ombudsman's Annual Report, and a performance evaluation of TRS-Care and TRS-ActiveCare health plans. The Board will also deliberate on the selection of Health Plan Administrators, consider leases for regional offices, and receive updates on data governance, security, pending litigation, the TEAM program, and performance payment plans. Additionally, the meeting will cover updates on the Pension Design Study, the organization's Artificial Intelligence strategy, and AI governance and risk assurance.