ERS manages retirement trust assets of approximately $32 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 65% of the value of the ERS Trust.

The ERS Board of Trustees, following a recommendation by the Investment Advisory Committee, adopted an asset allocation strategy to increase investment diversity while maintaining an acceptable level of risk.

Annualized Rate of Return (Annual Gross of Fees)

As of April 2021

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.

8.02 %10.29 %9.80 %27.17 %

Pension Funds Investment Pool Return (Net of Fees)

ERS net investment performance returns (less reasonable costs) is reflected against the policy benchmark (expected returns) based on the trust asset allocation above.

As of April 2021

February 2021 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, fixed income, global 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 Fund Amount as of April 2021 - $32.8 billion  Chart of February 2021 total fund amount. A text description of this pie chart ii in table below.

Asset ClassApril 2021
Global Public Equity  40.92 %
Fixed Income19.47 %
Private Equity 16.53 %
Real Estate 11.85 %
Hedge Funds 4.56 %
Special Situations0.59 %
Infrastructure 3.66 %
Cash & Equivalents 2.46 %
TOTAL 100%