The Teachers Retirement Association of Minnesota (TRA) provides retirement, disability, and survivor benefits to public school teachers and educators across Minnesota. With approximately $25 billion in assets, TRA serves over 180,000 active and retired members. The fund’s assets are managed by the Minnesota State Board of Investment (SBI).
Investment Strategy
TRA’s assets are invested through the SBI’s combined investment program, which pools assets from multiple Minnesota retirement systems. The portfolio includes domestic and international equities, fixed income, private equity, real estate, and other alternatives. Asset allocation is set by the SBI based on long-term return requirements and risk parameters.
The alternatives program includes private equity investments in buyout, growth, and venture strategies. Real estate allocations span core and value-add funds across diversified property types. The SBI has been a measured allocator to alternatives, building the program over time with a focus on established managers with multi-fund track records.
By pooling assets across multiple retirement systems, the SBI achieves scale advantages that benefit TRA’s portfolio through better access to institutional-quality managers and lower aggregate fees.
How to Approach
Fund managers should direct inquiries to the Minnesota State Board of Investment. The SBI manages alternatives for TRA and several other Minnesota retirement systems. GPs should present a clear strategy overview, audited track record, and competitive fee structure. The SBI maintains relationships with multiple investment consultants who help source and evaluate managers.
Frequently Asked Questions
What is TRA Minnesota's alternatives allocation?
TRA Minnesota allocates approximately 12% of its portfolio to alternatives, including private equity and real estate. The fund has taken a conservative approach to building its alternatives program, gradually increasing exposure as the internal team gains experience.
Who manages TRA Minnesota's investments?
TRA Minnesota's investments are managed by the Minnesota State Board of Investment (SBI), which oversees assets for multiple state retirement systems. The SBI employs an internal investment team and works with external managers and consultants for alternatives.
How can GPs get in front of TRA Minnesota?
GPs should engage with the Minnesota State Board of Investment, which manages the investment portfolio for TRA. The SBI evaluates managers through a structured process and works with investment consultants. Outreach should include a fund summary, track record, and description of strategy differentiation.
