This report covers the responses House Appropriations S/C on Infrastructure, Resiliency & Investments received for their RFI on Charge #3 regarding the implementation of SB 69 and the impact to investment returns made from the Economic Stabilization Fund. The RFI for this charge can be found here and responses in their entirety can be found here.
The HillCo report below is a summary of information intended to give you an overview and highlight of the various topics included in the responses. This report does not cover the entirety of each response, but aims to provide an overview of the testimony submitted.
Glenn Hegar, Texas Comptroller of Public Accounts
- Economic Stabilization Fund was created under HB 903 of the 84th and expanded by SB 69 of the 86th; SB 69 authorized the comptroller to invest up to 75% for a higher return
- Report includes a presentation from the Texas Treasury Safekeeping Trust Company to the House Appropriations Committee on the TESTIF
- Since fund was created, the portfolio has returned an average of 2.59% annually and has earned over $259 million in excess of the treasury pool; has earned $260 million over inflation
- Fund’s year to date performance of 2.36% builds on last year’s 4.10%
- Since SB 69, $1.2 billion has been invested in mostly liquid fixed income assets
- Invests in 25 different strategies including the Treasury Pool and the custodial Money Market Fund at State Street
- Portfolio remains highly liquid; over 85% could be returned to cash in a week
- Report includes the following graphs: Hypothetical Growth since Inception, Asset Allocation Summary, Asset Allocation Evolution, Portfolio Liquidity, TESTIF Geographic Allocation, Fixed Income Summary, Fixed income Detail, TESTIF Performance Table, Asset Class Definition, Treasury Pool Structures