TCDRS Board Updates Capital Market Assumptions
The TCDRS Board of Trustees has reviewed and updated our capital market assumptions for 2019. The revised 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 meets our long-term investment goal of 8% within an acceptable level of risk.
These assumptions are created with guidance from outside investment consultants. Our board reviews the assumptions each year.