TMRS plans $750m of real estate investments, rebalancing of core portfolio

At its June 23 meeting, the Texas Municipal Retirement System (TMRS) revealed plans to commit $750 million of capital to real estate in 2022.

TMRS said it moderately decreased deployment as the core portfolio investments are becoming fully allocated. In comparison, the pension fund committed $860 million of capital to real estate in the calendar year 2020.

TMRS is also planning a rebalancing of its core real estate portfolio, which the pension fund says has reached a mature state, allowing for reassessment of the entire portfolio. According to TMRS, core real estate provides a strong income component and an excellent diversifier due to low correlations to the public equity market.

TMRS’s core exposure is at 63 percent, greater than the 50 percent minimum limitation. The value-add exposure is at 24 percent and the opportunistic exposure at 13 percent.