US - The Teacher Retirement System of Texas plans to boost investments in large cap stocks, real estate and hedge funds, while curbing fixed-income and currency holdings.
The strategy stems from the Austin-based fund's view that US equity markets offer better values than bonds, even as share indexes have about doubled or better since March 2009, chief investment officer Britt Harris said today.
"We have to accept that economic volatility is going to increase," Harris said at a meeting of the fund's board. "We need to be more equity-oriented but in a different way. We are going to need to lower our bond orientation."
The plan had a return of 12.6% for the year through September, with an ending value of about $100.3bn, according to a December statement. It described the return as first among US public pensions with more than $10bn in assets. About 53% of the fund's holdings were in equities as of September 30, including $4.1bn in large-cap US stocks, according to the December statement.
The fund said it held $17bn in Treasury debt, including $7.5bn in inflation-indexed securities.
The pension lists about 1.3 million members and beneficiaries, including teachers in public schools and universities. Plan trustees this month picked Brian Guthrie, the group's deputy head, to succeed Ronnie Jung as executive director, starting September 1.
The Pensions and Lifetime Savings Association (PLSA) has announced it will shrink its board by more than one-third as part of a governance overhaul to make it "agile and more appropriate".
Smaller FTSE 350 defined benefit (DB) schemes were nearly 15 percentage points less well-funded than larger schemes in 2017, according to a Goldman Sachs Asset Management (GSAM) analysis.
The advent of collective pension systems could help the UK avoid demographic challenges which will make it "impossible" for society to help savers in retirement, experts say.