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TRS boosts target allocation to private equity

The US public pension has incrementally increased its strategic exposure to the asset class.

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Institution: Teacher Retirement System of Texas
Headquarters: Austin, Texas
AUM: $145.89bn
Allocation to alternatives: 31.10%
Bitesize: $200-500m

Teacher Retirement System of Texas (TRS) has voted to change its strategic asset allocation framework effective from July, according to a recent press release on the pension’s website. The change means that TRS has increased its target allocation for private equity from 13.0 percent to 14.0 percent, with its current allocation to the asset class standing at 13.90 percent.

“Revising the Trust’s asset allocation is important because it represents the risk-return strategy by which TRS diversifies its portfolio” said TRS Executive Director Brian Guthrie.

There have also been adjustments for other alternative asset classes. For real estate, the target allocation has risen from 14.0 to 15.0 percent. For investments within energy, natural resources and infrastructure the target allocation has risen from 5.0 percent to 6.0 percent.

As illustrated in the charts below, TRS has made 13 commitments to private equity funds with a 2019 vintage, which combined constitute $2.03 billion.

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