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Texas TRS boosts allocation to infrastructure
Investors - AUGUST 23, 2019

Texas TRS boosts allocation to infrastructure

by Kali Persall

The $154 billion Teachers Retirement System (TRS) of Texas is bumping up its strategic allocation to infrastructure, according to Top 1000 Funds.

The pension fund voted to increase its energy, natural resources and infrastructure portfolio by 1 percent, as the result of its latest five-year study. The portfolio now has a 6 percent allocation to infrastructure.

The energy, natural resources and infrastructure portfolio invests in commingled funds, direct and co-investments, according to Texas TRS. It focuses on core, value-add and opportunistic assets in the resources and infrastructure sectors, such as agriculture, timber, and oil and natural gas projects across the delivery pipeline.

The study examined more than 50 risk metrics, and resulted in the move to diversify away from equity risk, which represents the fund’s highest allocation.

The fund reduced its allocation to global equities by 3 percent, while increasing private equity and real estate by 1 percent, alongside infrastructure.

Texas TRS expects to transition the changes over a six-month period.

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