Texas Pension With $184 Billion to Halve China Stock Allocation
- TRS effectively cuts China target allocation to 1.5% from 3%
- China’s weight to fall in line with Taiwan under new benchmark
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The manager of a $184 billion public pension fund for Texas public education employees is halving its target allocation to Chinese stocks, potentially cutting billions of dollars of such holdings over months.
Teacher Retirement System of Texas is switching to a new tailored emerging markets stock benchmark to reduce China’s “outsized weight” in the MSCI Emerging Markets Index it once relied upon, according to a previously unreported proposal approved at a mid-September meeting. The move will effectively see China’s long-term target weight in its portfolio cut to about 1.5%, a size similar to or even smaller than Taiwan.