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Performance

ERS manages retirement trust assets of approximately $29 billion on behalf of state employees and retirees, who are the beneficiaries of the Trust. Investment returns continue to be the largest funding component of retirement benefits, accounting for 65% of the value of the ERS Trust.

The ERS Board of Trustees, following a recommendation by the Investment Advisory Committee, adopted an asset allocation strategy to increase investment diversity while maintaining an acceptable level of risk.

Annualized Rate of Return (Annual Gross of Fees)

ERS invests on a long-term basis with the goal of earning risk-adjusted investment returns at a reasonable cost to help provide retirement benefits guaranteed for the lifetime of State of Texas retirees.

10-year 5-year 3-year 1-year
5.67% 8.43% 5.88% 12.15%

Pension Funds Investment Pool Return (Net of Fees)

ERS net investment performance returns (less reasonable costs) is reflected against the policy benchmark (expected returns) based on the trust asset allocation above.
 

As of April 2018


ERS Retirement Trust Asset Allocation

ERS invests in asset classes that include domestic and international equities, fixed income, global real estate, private equity, hedge funds, and infrastructure. The portfolio is diversified with a mix of active and passive management with an array of investment strategies.

ERS' diversified portfolio generally brings steady returns - to provide enough cash flow to pay monthly benefits and limit downside risk during poor economic environments over the long-term.

Asset Class April 2018
Global Equity   46.50%
Fixed Income 23.08%
Private Equity  13.11%
Real Estate  9.44%
Hedge Funds  3.65%
Infrastructure  2.04%
Cash & Equivalents  2.18%
TOTAL  100%