The Texas PSF board of directors sets the asset allocation policy for the Fund, including determining the available asset classes for investment and approving target percentages and ranges for allocation to each asset class, with the goal of delivering a long-term risk-adjusted return through all economic and market environments.
A formal asset allocation study is conducted at least every two years or more frequently at the direction of the Board.
| Asset Class | Weight (%) |
|---|---|
| Large Cap US Equity | 15% |
| Small/Mid-Cap US Equity | 6% |
| Non-US Developed Equity | 10% |
| Emerging Market Equity | 6% |
| Core Bonds | 11% |
| Non-Core Bonds (High Yield & Bank Loans) | 3% |
| Emerging Market Debt (Local Currency) | 2% |
| U.S. Treasuries | 2% |
| Absolute Return | 6% |
| Private Equity | 15% |
| Real Estate | 12% |
| Emerging Manager Program (Private Equity/Real Estate) | 1% |
| Real Return (Commodities & U.S. Treasury Inflation Protected Securities (TIPS)) | 4% |
| Private Real Assets – Natural Resources | 3% |
| Private Real Assets – Infrastructure | 4% |