The Teacher Retirement System of Texas, one of the state’s largest public pension funds, backed its first investments in special-purpose acquisition vehicles, a strategy that doesn’t fit neatly into traditional asset class portfolios, according to Ashley Baum, director and head of special opportunities on the pension’s investment team.

The Texas pension committed $200m to seven SPACs from its special opportunities portfolio, which the pension launched in 2013 to capture niche investment opportunities, Ms. Baum told.

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The Teacher Retirement System of Texas is a public pension plan providing retirement and related benefits to those employed by public schools, colleges, and universities supported by the State of Texas. The system’s core mission is to make a positive difference in the lives of Texas educators by prudently investing and managing trust assets and delivering member benefits. Nearly 1.7 million public education and higher education employees and retirees participate in the system.

Source: Wall Street Journal

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