Texas TRS: Real assets allocation through the years

The Teacher Retirement System of Texas' latest quarterly review of its real assets portfolio shows how its portfolio composition has changed over the years. With a 15% target allocation for the $117.5 billion pension fund, the real assets portfolio aims to achieve a long-term return of 10% while also serving as an inflationary hedge and portfolio diversifier. Since the end of 2007, core real estate holdings have increased the most, 15 percentage points to nearly 30% of the portfolio at the end of 2012. Other real assets, which include infrastructure, oil and gas, and commodities increased by 11 percentage points to 16% of the portfolio, while its real assets special situations category (which includes REITs) stands at 9% of the portfolio.