Coming off a strong year for corporate earnings and economic growth in 2021, the global economy has been hit with myriad headwinds in 2022. The unfathomable sequence of events occurring in Ukraine is certainly top of mind. Beyond the horrific human tragedy, there has been a significant ripple effect on global commodity prices. This has added to already mounting inflationary pressures from ongoing supply chain problems and has led central banks around the world to expedite their rate hike plans in an attempt to get inflation under control. 

In its earlier stages, the asset-backed securities¹ (ABS) market securitized a relatively narrow market segment focusing on consumer-centric financial assets and targeted a narrow group of investors. That is no longer the case. Over the past decade, ABS has evolved substantially, surpassing other financial products in its ability to provide an attractive and diverse universe of investment opportunities. Importantly, the evolution and growing sophistication of ABS allows skilled investment teams to tailor portfolios to a growing investor base with a broad range of investment goals.

The speed and extent of further monetary tightening in the United States is uncertain, and as a result, there are concerns about the impact of rate hikes on future fixed-income returns. But we do not believe investors should be concerned, and this may even be a buying opportunity.

CHICAGO and LONDON, 7 September 2022 – Northern Trust’s Capital Market Assumptions (CMA) Report, a multi-asset class, five-year investment outlook updated annually, expects global private equity to lead five-year annualized returns at 9.6%. Global high yield and U.K. equities are expected to lead bond and stock returns, at 7.5% each.  Returns are expected to be within a global growth environment that slows to 2.6% annually.

TEXPERS has a section on its website where it publishes requests for proposals, those public documents that announce a project and invite proposals from service providers. 

Administrators and trustees of public retirement systems must act in the best interests of their beneficiaries, exercise good faith in their duties, seek professional services, and supervise those to whom functions are assigned. To put it simply - you're a leader. 

A newly revamped tool from the U.S. Census Bureau is available for TEXPERS members looking for job data. 

Hispanic Heritage Month in the United States runs from Sept. 15 to Oct. 15, celebrating the histories, cultures, and contributions of Hispanic citizens in the country. 

On Sept. 20, 2022, Americans will celebrate National Voter Registration Day with a massive cross-country effort to register voters ahead of the midterm elections. Every eligible American voter should have the option to exercise their right to be heard at the ballot box. National Voter Registration Day is the right day to start by registering.

There are 1.07 million minority-owned firms in the United States with 9.3 million employees and $344.5 billion in annual payroll, according to the 2019 Annual Business Survey.

In its latest meeting, the Texas Pension Review Board's Investment Committee made it clear that it intends to request pension funds to report on how their investment portfolios are structured to meet real-time expectations for outflow benefit payments to retirees. 

Fort Worth Employees' Retirement Fund Executive Director Benita Falls Harper has announced her departure from the Fund to accept a new position. Her service with the Fund will conclude following the Board's monthly meeting on Sept. 28, 2022. 

Tiffany White is the new executive director of the Texas Emergency Services Retirement System, according to an announcement on the state pension fund's website.

TEXPERS' office is closed in observance of Labor Day on Monday, Sept. 5, 2022. Labor Day is an annual celebration of American workers' social and economic achievements. Don't forget the impact of public employees on local communities.

Nearly 270 people attended TEXPERS' Summer Educational Forum, Aug. 21-23, 2022, in El Paso, located in the far western corner of the Lone Star State, bordering Mexico.

This report, compiled by TEXPERS legislative consultants and staff in attendance, is intended to give you an overview and highlight the discussions on the various topics taken up. It is not a verbatim transcript of the discussions but based on what was audible or understandable to the observer and the desire to get details out as quickly as possible with few errors or omissions.

Napier Park Global is a Silver Sponsor of TEXPERS' 2022 Summer Educational Forum Aug. 21-23 in El Paso, Texas, and is sending Amit Sanghani, managing director and product specialist for the firm's global credit and real asset strategies.

As a Silver Sponsor of TEXPERS' 2022 Summer Educational Forum in El Paso, Texas, Oxford Funds, LLC will send Senior Portfolio Manager Deep Maji to present.

William Blair Investment Management is a Silver Sponsor of TEXPERS' 2022 Summer Educational Forum Aug. 21-23 in El Paso, Texas, and is sending hard currency portfolio manager Jared Lou from the firm's emerging markets debt team to present.

In 2018, public pension benefit dollars represented between 0.4% and 1.1% on average of Gross Domestic Product (GDP) for each county type in Texas. New research indicates that public pension plans have a particularly positive economic impact on small towns and rural communities.