T
he Texas Employees Retirement System (ERS) plans to invest $750m in real estate and infrastructure for its 2026 fiscal year, which begins in September. The pension fund aims to allocate up to $450m to real estate and commit $300m to infrastructure.

    In the real estate sector, ERS intends to make between 7-13 commitments, primarily to funds, while also exploring new co-investment opportunities. Its current real estate portfolio is underweight in industrial properties, accounting for just 24% of its holdings compared to a benchmark weighting of 37%.

    ERS' residential exposure stands at 34%, exceeding the benchmark's 28%. This overweight position stems from investments in student, senior and manufactured housing, as well as single-family rental assets. The pension fund plans to target transportation and energy sectors for infrastructure commitments.

    These will be made globally, with a potential four to nine commitments, and consideration also given to emerging markets.