Investments
Investment Policy
Guiding Principles
Guiding Principles The overall objective of TMRS’ Investment program is to ensure that members, retirees, and beneficiaries are provided the benefits they have been promised by their employers at a reasonable and predictable cost to the employers. Assets will be invested with a total return posture, given appropriate consideration for portfolio volatility (risk) and liquidity. Total return includes dividends, interest, and realized and unrealized capital appreciation.
General Objectives
TMRS investments are held in trust for the exclusive benefit of members and invested under the provisions of the TMRS Act. The investment statutory guidelines for TMRS are found in the Texas Government Code, Sections 855.301 through 855.303.
Investments are made with the degree of judgment and care, under the circumstances, that persons of prudence, discretion, and intelligence exercise in the management of their own affairs, considering the probable income from the securities and probable safety of their capital and in consideration of the purposes, terms, distribution requirements, and other circumstances of the trust. Investment and management decisions respecting individual assets will be evaluated not in isolation but in the context of the investment portfolio as a whole and as a part of an overall investment strategy having risk and return objectives reasonably suited to the trust.
Investment Reports
Portfolio Activity Reports
PRB Investment Reports
- Investment Program 2013 Year-End Wrap Up
- Q4 2013 Investment Update and Performance Review (RV Kuhns)
- Q3 2013 Investment Update and Performance Review (RV Kuhns)
- Q2 2013 Investment Update and Performance Review (RV Kuhns)
- 2013 Second Quarter Investment Overview
- Q1 2013 Investment Update and Performance Review (RV Kuhns)
- Monthly Performance Summary as of August 31, 2013
- Monthly Performance Summary as of July 31, 2013
- Monthly Performance Summary as of June 30, 2013
- Monthly Performance Summary as of April 30, 2013
- Monthly Performance Summary as of March 31, 2013
- Monthly Performance Summary as of December 31, 2012
- Q4 2012 Investment Update and Performance Review (RV Kuhns)
- Investment Program 2012 Year‐End Wrap Up
- Investment Program 2012 Year‐End Wrap Up
- Q4 2012 Investment Update and Performance Review
- Q3 2012 Investment Update and Performance Review
- Q2 2012 Investment Update and Performance Review
- Q1 2012 Investment Update and Performance Review
- Monthly Performance Summary as of December 31, 2012
- Monthly Performance Summary as of September 30, 2012
- Monthly Performance Summary as of August 31, 2012
- Monthly Performance Summary as of June 30, 2012
- Investment Update as of May 31, 2012
- Investment Update as of March 31, 2012
- Investment Update as of February 29, 2012
- TMRS Asset/Liability Study, September 2011 (96 pages)
- Investment Update as of December 31, 2011
- Investment Update as of October 31, 2011
- Quarterly Summary as of September 30, 2011 - 3Q 2011
- Investment Update as of August 31, 2011
- Investment Update as of June 30, 2011
- Performance Report as of May 31, 2011
- Quarterly Summary as of March 31, 2011 - 1Q 2011
- Performance Report as of January 31, 2011
- Quarterly Summary as of December 31, 2010 - 4Q 2010
2011 Investment Update
In 2011, TMRS continued implementing the following strategic target allocations which were adopted by the Board in June 2009, with implementation to occur over a multi-year period (see pie charts.)
There were several initiatives during 2011 aimed at continuing our progress toward the target allocations, including monthly commitments to U.S. and international equity index funds. By the end of 2011, the equity target allocations were met with 40% of the fund invested in passively managed equity index funds (20% in domestic equities and 20% in international equities). TMRS began funding its real estate target allocation by committing $200 million to real estate limited partnerships and funding $97 million. With the assistance of TMRS’ real estate consultant, ORG, TMRS will continue to seek out and fund additional real estate investments over the next few years in order to meet its 10% target. In addition, TMRS funded its 5% target allocation to the real return asset class through investment in global inflation-linked bonds. Assets allocated to fixed income managers totaled 54.2% and will gradually move to the 35% target allocation as fixed income funds other asset classes.
The Board will continue to authorize implementation to the strategic target allocations in stages. To ensure that the risk tolerance remains appropriate, the target allocations will be reviewed at least annually for reasonableness relative to significant economic and market changes or changes to the Board’s long-term goals and objectives.
2011 Returns
The overall one-year rate of return on the $18.5 billion investment portfolio was 2.41% with fixed income the best performing asset class, earning 7.99%, while the return on equities was 1.03% domestic and -13.35% international.
- Quarterly Summary as of December 31, 2010 - 4Q 2010
- Performance Report as of November 30, 2010
- Performance Report as of October 31, 2010
- Quarterly Summary as of September 30, 2010 - 3Q 2010
- Performance Report as of September 30, 2010
- Performance Report as of August 31, 2010
- Performance Report as of July 31, 2010
- Quarterly Summary as of June 30, 2010 - 2Q 2010
- Performance Report as of May 31, 2010
- Quarterly Summary as of March 31, 2010 - 1Q 2010
- Performance Report as of February 28, 2010
- Performance Report as of January 31, 2010
Asset Allocation
(Allocations shown may not sum up to 100% exactly due to rounding.)
Asset Allocation • Bar Chart Comparison
Update: In accordance with the IPS (effective 1/1/2019), US Equities and Non-US Equities asset classes have been combined into the Global Equities asset class.
At its meeting on September 26, 2019, the TMRS Board approved a new portfolio target allocation to be effective January 1, 2020: 30% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 10% Private Equity.
At its meeting on July 30, 2015, the TMRS Board approved a new portfolio target allocation: 35% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 5% Private Equity.
Update: In accordance with the IPS (effective 1/1/2019), US Equities and Non-US Equities asset classes have been combined into the Global Equities asset class.
At its meeting on September 26, 2019, the TMRS Board approved a new portfolio target allocation to be effective January 1, 2020: 30% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 10% Private Equity.
At its meeting on July 30, 2015, the TMRS Board approved a new portfolio target allocation: 35% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 5% Private Equity.
Asset Allocation • Pie Chart Comparison
Update: In accordance with the IPS (effective 1/1/2019), US Equities and Non-US Equities asset classes have been combined into the Global Equities asset class.
At its meeting on September 26, 2019, the TMRS Board approved a new portfolio target allocation to be effective January 1, 2020: 30% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 10% Private Equity.
At its meeting on July 30, 2015, the TMRS Board approved a new portfolio target allocation: 35% Global Equity, 10% Core Fixed Income, 20% Non-Core Fixed Income, 10% Real Return, 10% Real Estate, 10% Absolute Return, 5% Private Equity.
Investment Advisors
Custodian and Bank
Custodian • State Street Bank and Trust Company
Depository Bank • JPMorgan Chase Bank
Investment Consultants
Traditional Asset Classes • RVK
Private Markets • Albourne America, LLC
Contacts for Investment Managers
TMRS Contacts
Thank you for your interest in the TMRS investment program. Firms or persons interested in contacting TMRS regarding investment opportunities should contact the appropriate team listed below:
General/Specialty Consultants
TMRS conducts manager searches with the assistance of the following general and specialty consultants; be sure to remain current on these consultants’ respective databases.
- Traditional Asset Classes
- RVK
- Private Markets
- Albourne America LLC