MFA Blog

Texas Pension Fund Approves Investment Plan to Commit $2.4 Billion to Alternatives in FY14

Posted on August 22, 2013

The Texas Employees Retirement System approved “tactical investment plans” for FY2014, including plans to invest or commit $2.4 billion to alternative investments, including hedge funds.  The move for the $24.2 billion pension fund came during a board meeting earlier this week.

Pension fund staff intend to fully reach the fund’s 5% target allocation for hedge funds by the end of FY14.  Pensions & Investments noted that about $1.3 billion “is slated to be invested in a range of hedge fund strategies during the 12-month period.”

The publication also highlighted a combined allocation of $188 million that is designated for investment in an event-driven hedge fund and a relative value strategy before the end of FY13.  Those two new allocations will bring the pension fund’s hedge fund portfolio to $670 million as of September 1.

The pension fund also plans to invest assets in private equity and infrastructure in FY14, with new commitments approved for the coming fiscal year.  Learn more about the tactical investment plan and hedge fund allocations from Pensions & Investments.