Board Updates Capital Market Assumptions
The TCDRS Board of Trustees reviewed and updated our capital market assumptions for 2018. The updated assumptions are available online.
Capital market assumptions help us build a diversified portfolio. They are forward-looking expectations of return, risk and correlation of each of our asset classes. Using the capital market assumptions, TCDRS then models thousands of potential asset class combinations. This helps our trustees and investment staff create a portfolio that will meet our long-term investment goal of 8% with an acceptable level of risk.
The assumptions are created with guidance from outside investment consultants. Our board reviews the assumptions annually.