Texas Teachers to assign $1.3 billion to emerging managers over next 3 years

Texas Teacher Retirement System, Austin, pledged an additional $1.3 billion for investment in emerging money managers.

R. David Kelly, chairman of the board of trustees, revealed the news about the $125.3 billion pension fund’s add-on commitment to emerging managers at the 2016 Emerging Managers Conference on Jan. 13. TRS co-sponsored the event with the $25.4 billion Texas Employees Retirement System, Austin.

The incremental allocation will go to new emerging managers and to increase the amount managed by existing managers in the program over the next three years, Mr. Kelly said in a news release.

The new allocation will be distributed over the next three years through fiscal year 2018. TRS’ emerging manager program totaled $1.3 billion as of Sept. 30, said Rhonda Price, a TRS spokeswoman, in an e-mail.

Separately, Mr. Kelly said in the news release that TRS expanded its relationship with Grosvenor Capital Management to include new manager sourcing and manager monitoring for private market investments such as private equity, hedge funds, real estate, infrastructure and co-investments in those asset classes. TRS’ internal investment staff will retain decision-making discretion about Grosvenor’s manager recommendations.

The amount of assets managed by Grosvenor and the asset classes in which it invests for the pension fund could not be learned by press time.