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Investment Strategy

Creating and managing innovative investments

​​​​​​At TRS we believe every great organization has a distinctive culture. We embrace this idea in five important ways. We are large, long-term, liquid, and local with low leverage. Each element is significant and gives us a viable, competitive advantage over most other institutional investors. When we operate well, we are the market’s proverbial ‘strong hands.’ 

Everything we do is aimed at creating a sustainable, competitive advantage for the fund and the more than two million Texans we serve. That effort includes finding innovative investment ideas, making investments and managing these investments.

The pension trust portfolio is structured and managed to achieve the following objectives:

  • Control risk through proper diversification of asset classes and by establishing long-term risk and return expectations.

    Control risk through proper diversification of asset classes and by establishing long-term risk and return expectations.

  • As applicable to the pension plan, achieve a long-term rate

    As applicable to the pension plan, achieve a long-term rate of return that:

    • Exceeds the assumed actuarial rate of return adopted by the board
    • Exceeds the long-term rate of inflation by an annualized 5%
    • Exceeds the return of a composite benchmark of the respective long-term normal asset mix weighting of the major asset classes
View Investment Policy Statement