Texas ERS outperforms benchmark by 115 bps in 2017

The $29.2 billion Employees Retirement System of Texas outperformed its investment benchmark by 115 basis points for the 12 months ending Dec. 31, 2017, according to a report from the pension fund.

The investment return outperformance was primarily due to strong performance in the global public equity and private and public real estate components. ERS’ deputy chief investment officer and representatives of Aon Hewitt presented the pension fund’s performance.

Diversification of investments has been effective for the pension fund as well, with the fund performing on par with the long-term public benchmark at a meaningfully lower level of risk.

The pension fund’s global real estate portfolio includes domestic and international private, public and debt investments.

Texas ERS has a target allocation to real estate of 10 percent and an actual allocation of 9 percent.