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 People's Pension, Atlas Master Trust and The Cheviot Trust have been granted authorisation from The Pensions Regulator (TPR), taking the total number of authorised master trusts to 18.
Pension schemes have been warned they may now face a more challenging legal test if they wish to fix drafting errors.
The Greene King Pension Scheme has appointed XPS Pensions as its actuarial and investment adviser following a competitive tender process.
Professional Pensions has compiled a list charting the progress of master trust authorisation. View our list in full here...