Texas Teacher Retirement System
PensionTexas · as of 2024
AUM
$200B
Held in U.S. securities
$72B
36% of AUM
Return target
7.0%
Asset allocation policy
Target weights set by the board in the plan's Investment Policy Statement. Each class has a rebalancing range — drift outside the range triggers a rebalance; performance is measured against the listed benchmarks.
| Asset class | Target | Range | Benchmark | $ value |
|---|---|---|---|---|
| Public equity | 54% | 48–60% | Custom global equity composite | $108B |
| Real return (real estate, energy, infra, TIPS) | 21% | 15–27% | CPI + 5% | $42B |
| Stable value (long Treasuries, hedge funds) | 16% | 12–20% | Bloomberg Long Treasury / HFRI composite | $32B |
| Private equity | 14% | 9–19% | Russell 3000 + 3% | $28B |
| Cash / leverage | -13% | -20–0% | 90-day T-bill | $-26B |
| Risk parity | 8% | 4–12% | Custom risk-parity composite | $16B |
Holdings overview
One of the few large U.S. pensions to formally use risk parity at the strategic level. Private equity program among the largest in the public-pension peer group; emerging markets equity overweight relative to peers.
Board mandates
- Serve ~2 million Texas public-education employees and retirees.
- Risk-parity overlay and modest leverage permitted in the Strategic Asset Allocation.
- In-state private investment program targeting Texas-headquartered managers and assets.
- Internal management for ~30% of the fund; remainder via 200+ external managers.
Source: www.trs.texas.gov