Performance

ERS manages retirement trust assets of approximately $35 billion on behalf of state employees and retirees, who are the beneficiaries of the Trust. Investment returns continue to be the largest funding component of retirement benefits, accounting for 63% of the benefits provided by the ERS Trust.

The ERS Board of Trustees, following a recommendation by the Investment Advisory Committee, adopted an asset allocation strategy to provide long-term capital appreciation while maintaining an acceptable level of risk.

Annualized Rate of Return (Annual Gross of Fees)

As of August 2022

ERS invests on a long-term basis with the goal of earning risk-adjusted investment returns at a reasonable cost to help provide retirement benefits guaranteed for the lifetime of State of Texas retirees.

10-year5-year3-year1-year
8.36 %8.29 %9.67 %-1.65 %

Pension Funds Investment Pool Return (Net of Fees)

ERS net investment performance returns (less reasonable costs) is shown alongside the policy benchmark, which represents the expected returns of the trust asset allocation below.

As of August 2022

May 2022 Pension funds investment pool return chart. Long description of chart above.

ERS Retirement Trust Asset Allocation

ERS investments include a mix of active and passive management with an array of investment strategies. Investment asset classes include domestic and international equities, credit, government bonds, real estate, private equity, hedge funds, and infrastructure.

ERS' diversified portfolio generally brings steady returns and provide sufficient cash flow to pay monthly benefits and limit downside risk during poor economic environments over the long-term.

Total Trust value as of August 2022 - $33.3 billion

Asset ClassAugust 2022Strategic Target
Public Equity33 %37 %
Private Equity20 %13 %
Global Credit9 %13 %
Public Real Estate3 %3 %
Private Real Estate11 %9 %
Infrastructure5 %7 %
Rates11 %11 %
Hedge Funds5 %5 %
Special Situations1 %1 %
Cash1 %1 %
TOTAL 100 %100 %