US - Texas may double how much the $108bn Teacher Retirement System (TRS) can invest in hedge funds, which lawmakers say reduces risk from stock market volatility.
The pension could put as much as 10% of its assets in hedge funds under a bill from Representative John Otto, a Dayton Republican. The Legislature capped the allocation at 5% in 2007.
Having about 4% with hedge funds saved the pension about $900m during the stock market slide in 2008, Ronnie Jung, chief executive officer of the system, told the Pensions, Investments and Financial Services committee today in Austin.
"If we'd had more authority, we would have saved more money," he said.
The system's assets peaked at $112bn in 2007 and slumped to less than $80bn by early 2009, Jung said. Investments have rebounded to about $108bn, he added.
Texas allowed the teacher pension to hire external managers for as much as 30% of its assets in 2007. The fund paid $76.6m of fess to outsiders in 2010, led by $25.7m to Omega Advisors, a New York hedge fund founded by Leon Cooperman.
The plan returned 12.6% in the year through September, according to a December statement. Hedge-fund investments totalled $3.9bn on June 30 compared with $1.2bn five years earlier.
The Pensions Regulator (TPR) and Financial Conduct Authority (FCA) have launched a refreshed ScamSmart campaign to warn savers about unsolicited pension communications.
Ann Harris OBE and Mike Dailly have been appointed non-executive directors at the upcoming single financial guidance body (SFGB).
Pension schemes are "placing too much focus" on a narrow section of the private debt market where competition is driving down "compelling opportunities", according to Willis Towers Watson.
Barnett Waddingham's head of business development Adrian Cooper has left the consultancy to join TPT Retirement Solutions in a newly-created role.