The Texas PSF Corporation 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 every two years or more frequently at the direction of the Board.
| Asset Class | Target Allocation (%) |
|---|---|
| Cash Equivalents | 3.0% |
| Core Bonds | 9.0% |
| Non-Core Bonds (High Yield) | 3.0% |
| Non-Core Bonds (Bank Loans) | 3.0% |
| Large Cap U.S. Equity | 15.0% |
| Small/Mid-Cap U.S. Equity | 3.0% |
| Non-U.S. Developed Equity | 8.0% |
| Absolute Return | 6.0% |
| Private Debt (Liquid Substitute) | 9.5% |
| Private Equity | 20.0% |
| Real Estate | 10.5% |
| Natural Resources | 4.0% |
| Infrastructure | 6.0% |
Effective January 1, 2026