System maintenance: We will be conducting maintenance on our computer systems from 3 pm – 5 pm, Friday, May 27. Certain features of Member Access and Employer Access (EMIS) will be unavailable during this time. Members coming to the TRSL office on May 27 are encouraged to plan their visit before the scheduled maintenance time. Also, please remember that TRSL will be closed Monday, May 30, for Memorial Day. Normal office hours resume 8 am, Tuesday, May 31.
 

Alternative Assets & Real Estate

Alternative assets

Alternative asset funds include investments that are not listed on a public exchange and are not easily accessible to most individuals. These investments range from initial capital in start-up enterprises to leveraged buyouts of mature corporations. Alternative assets typically represent long-term commitments to funds with durations that can range from eight to 12 years. Alternative assets are illiquid relative to publicly traded investments and when invested as part of a larger diversified portfolio have the effect of producing higher returns while reducing overall portfolio risk. 

The TRSL alternative asset program began in 1995 and is invested primarily in limited partnerships. The partnerships, which are managed by a general partner, acquire or create ongoing businesses or provide private debt financing for companies. Alternative assets include buyout, venture capital, mezzanine debt, distressed debt, infrastructure, commodities, and farmland investment strategies. Each of these sectors has different return attributes, and thus, will provide diversification benefits to the overall TRSL portfolio. 

Real estate

The TRSL real estate program is an externally managed selection of limited partnership fund investments intended to provide alternative portfolio risk characteristics when compared with stocks, bonds, and alternative asset investments. The TRSL partnerships in this asset class invest in high quality (core) and opportunistic real estate. The combination of steady income and the potential upside from appreciation combine to generate returns between fixed income and equities returns. The real estate portfolio is managed to deliver risk-­adjusted returns that are consistent with the long-term return expectations for the asset class.

 
Private Assets: Market Value and Returns (as of March 31, 2022)
Account

Total Market Value ($)

in millions

Fiscal year Ending (%) 1-Yr Ending (%) 5-Yrs Ending (%) 10-Yrs Ending (%)
Total Fund 26,379 -0.15 10.24 11.22 10.00
TRSL Policy Benchmark   -0.03 5.33 9.92 9.25
           
Alternative Assets & Real Estate 11,859 12.38 32.52 15.77 13.74
TRSL Alternative Assets & Real Estate Benchmark 6.07 11.17 11.89 11.70
           
Alternative Assets 9,101 11.36 34.60 17.61 14.36
TRSL Alternative Assets Benchmark   2.16 8.22 12.84 11.99
           
Real Estate 2,758 16.03 24.83 10.17 11.50
TRSL Real Estate Benchmark   16.44 18.69 8.73 10.42
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