Texas Teacher Retirement System, Austin, on Thursday hired BlackRock, JPMorgan Chase, Lehman Brothers and Morgan Stanley as “strategic partners” to run $1 billion each. Funding will come from portfolios the $110 billion system managed internally.
The four managers will replicate the system’s total portfolio, gaining alpha both from weighting choices and a global tactical asset allocation overlay. Adding the managers will give the system a way to “gain valuable insights and tools” from the partner firms, as well as “first-time access to analytical tools and data sources that would otherwise be unavailable to the fund,” according to a TRS news release.
Plan officials have previously said the managers would give the fund access to capacity-constrained strategies and early access to those being developed.
