Texas Municipal plans real estate redemptions in 2023-2024

The Texas Municipal Retirement System (TMRS) said it plans to make more than $1 billion of real estate and fixed income redemptions in 2023 and 2024, as part of an effort to prioritize top-performing strategies largely within the pension fund’s existing manager roster.

In a recent board meeting document, TMRS said it is focused on streamlining its manager roster by expanding commitments with top-performing managers, while reducing commitments with below-median firms or strategies that no longer align with its strategic target allocation. TMRS confirmed that NEPC and/or Albourne support these investment actions.

In 2022, TMRS closed more than $4.5 billion of new investments and terminated or redeemed more than $2.7 billion of commitments to enhance trust fund-return expectations.

A total of 12 investments totaling $1.8 billion were approved with five new firms in the public and private markets, and six existing managers.

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