003 · Benchmarks
Texas ERS.
Targets, ranges and benchmarks as the document states them. Our copy of the IPS.
| Asset class | Bucket | Target | Range | Benchmark |
|---|---|---|---|---|
| Return Seeking Assets | Multi-Asset / Other | 80% | 70–88% | — |
| Global Equity | Public Equity | 52% | 42–61% | — |
| Public Equity | Public Equity | 36% | 26–46% | Bloomberg Global Investor Friendly Net (BGIFN)Bloomberg Global Investor Friendly Net Total Return Index (BGIFN) |
| Private Equity | Private Equity | 16% | 11–21% | Median of Wilshire Associates TUCS Total Private Equity Return of Master Trusts for Public Plans > $5 Billion |
| Global Credit | Fixed Income | 12% | 6–21% | — |
| Public Credit | Fixed Income | 9% | 4–14% | Bloomberg US High Yield 2% Issuer Capped Cash Pay (LF89TRUU)Bloomberg US High Yield 2% Issuer Capped Cash Pay Total Return Index (LF89TRUU) |
| Private Credit | Private Credit / Debt | 3% | 0–8% | Morningstar LSTA US Leveraged Loan (SPBDAL) + 1.5% annuallyMorningstar LSTA US Leveraged Loan Total Return Index (SPBDAL) + 150 bps annually |
| Real Assets | Real Assets / Infrastructure | 16% | 11–21% | — |
| Real Estate | Real Estate | 10% | 5–15% | NCREIF Fund – Open End Diversified Core Equity (NCREIF ODCE)NCREIF Fund Index – Open End Diversified Core Equity (NFI-ODCE) |
| Infrastructure | Real Assets / Infrastructure | 6% | 1–11% | CPI Urban Consumers NSA (CPURNSA) + 4% annuallyUS CPI Urban Consumers NSA Index (CPURNSA) + 400 bps annually |
| Risk Reducing Assets | Multi-Asset / Other | 20% | 12–30% | — |
| Liquidity Assets | Cash | 14% | 8–22% | — |
| Rates | Fixed Income | 12% | 7–17% | Bloomberg US Intermediate Treasury (LT08TRUU)Bloomberg US Intermediate Treasury Total Return Index (LT08TRUU) |
| Cash & Equivalents | Cash | 2% | 1–10% | ICE BofA US 3-Month T-Bill (G0O1)ICE BofA U.S. 3-Month Treasury Bill Index (G0O1) |
| Diversifying Assets | Hedge Funds / Absolute Return | 6% | 4–10% | — |
| Hedge Funds | Hedge Funds / Absolute Return | 6% | 0–11% | HFRI FOF: Conservative (HFRIFOFC)HFRI FOF: Conservative Index (HFRIFOFC) |
| Special Situations | Multi-Asset / Other | 0% | 0–5% | — |
| Public Equity - Domestic | Public Equity | — | — | MSCI USA (NDDUUS)MSCI USA Total Return Index (NDDUUS) |
| Public Equity - International | Public Equity | — | — | MSCI ACWI IMI ex-USA (M1WDUIM)MSCI ACWI IMI ex-USA Total Return Index (M1WDUIM) |
| Insurance & Benefits Fund - Public Credit | Fixed Income | — | — | Bloomberg US High Yield 2% Issuer Capped Cash Pay (LF89TRUU)Bloomberg US High Yield 2% Issuer Capped Cash Pay Total Return Index (LF89TRUU) |
| Insurance & Benefits Fund - Rates | Multi-Asset / Other | — | — | Bloomberg US Intermediate Treasury (LT08TRUU)Bloomberg US Intermediate Treasury Total Return Index (LT08TRUU) |
| Insurance & Benefits Fund - Cash & Equivalents | Cash | — | — | ICE BofA US 3-Month T-Bill (G0O1)ICE BofA U.S. 3-Month Treasury Bill Index (G0O1) |
| Retiree Health Fund | Multi-Asset / Other | — | — | 3-Month Treasury bills3-month Treasury bills |