Texas Employees Retirement System Partners with Bloomberg Indices
The Employees Retirement System of Texas (ERS), which oversees a substantial pension fund exceeding $44 billion in assets under management, has made a significant decision to adopt Bloomberg's Equity Indices as it primary benchmark for public equity strategies. This move marks a proactive step towards ensuring that their investment strategies align with both regulatory standards and global market exposure.
Beginning on September 1, 2025, ERS will transition to a sophisticated, capitalization-weighted global benchmark. This solution is designed to effectively meet the state’s regulatory obligations while simultaneously providing extensive and efficient access to the performance metrics of equity markets around the globe.
David Veal, the Chief Investment Officer of ERS, expressed enthusiasm about this collaboration, stating, "We are pleased to collaborate with Bloomberg to ensure this important benchmark reflects both the regulatory requirements of our state and the global standards we expect as fiduciaries." This partnership reflects a commitment to transparency and effectiveness in their investment strategy.
According to Allison Stone, who heads the Multi-Asset Index Product Management team at Bloomberg Index Services Limited, the adoption of their equity index by ERS is a testament to Bloomberg Indices’ leadership and ability to provide innovative solutions that cater to institutional asset owners. Stone noted, "ERS' adoption underscores our commitment to meeting diverse investment mandates while providing broad market exposure. We are proud to be their provider of choice for this policy benchmark."
Bloomberg Equity Indices offer comprehensive coverage, capturing over 99% of the eligible free float market capitalization across more than 40 developed and emerging markets. Their offerings include traditional indices based on growth and value styles, as well as various thematic strategies and customization options for benchmarks, asset allocation, and new product creation.
The core benchmark indices provided by Bloomberg comprise the World Index (WORLD), Developed Markets (DM), and Emerging Markets (EM) Large and Mid Cap Indices, including the Bloomberg 500 (B500) Index. Each of these indices empowers ERS to navigate the complex landscape of investment opportunities.
As the industry continues to evolve, ERS can expect to benefit from the advanced data analytics and technology solutions that Bloomberg offers. Their capabilities are designed to enhance the way market participants engage with indices, ensuring that investment managers have access to reliable information and tools that can amplify their strategies.
ERS has a long-standing commitment to serving public servants who have dedicated their careers to the state. Since its establishment in 1947, it has managed essential benefits for employees and retirees of various Texas state agencies, ensuring their financial security and overall well-being.
Bloomberg's Index Services Limited has established itself as a leader in creating comprehensive and customized indices across multiple asset classes. Their innovative approach focuses on delivering strategic benchmarks that adapt to the changing needs of the market while integrating reliable data and technology solutions.
The Bloomberg company itself is recognized globally for its contributions to financial information and data services. By bridging connections across the financial ecosystem, Bloomberg empowers its clientele to make informed decisions and promote effective collaboration within the financial markets.
Frequently Asked Questions
What is the Employees Retirement System of Texas?
The Employees Retirement System of Texas is a pension fund that manages benefits for employees and retirees of Texas state agencies and higher education institutions, ensuring their financial security.
What new benchmark has ERS adopted?
ERS has adopted Bloomberg's Equity Indices as its policy benchmark to enhance its public equity strategy and ensure regulatory compliance.
What does Bloomberg's Equity Indices cover?
Bloomberg's Equity Indices cover over 99% of eligible free float market capitalization in more than 40 developed and emerging markets.
How does ERS benefit from this partnership?
The partnership with Bloomberg provides ERS with a benchmark solution that is tailored to meet regulatory requirements while offering exposure to global equity performance.
When will this benchmark transition take effect?
The adoption of Bloomberg's Equity Indices as the benchmark will take effect on September 1, 2025.
