The Teacher Retirement System of Texas has a long history of strong governance, including the board having an independent consultant and an investment team that is compensated well. The efforts have paid off in a positive relationship between the board and the investment staff.
“We’ve really developed a level of trust and our performance has been really good as well,” said board chairman Jarvis Hollingsworth via Zoom. “if you combine the communication with the quality of our staff and the quality of the performance, you can start to see how a board would develop a really strong trust in the investment team.”
For TRS, it starts with the set-up. The TRS board has long-tenured members, including Hollingsworth, who first joined in 2002. Early in Hollingsworth’s tenure as a board member, TRS shifted its compensation strategy to ensure that team members were being paid the market rate of asset managers. The move allowed TRS to attract and retain talent.
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