The largest public retirement system in Texas is moving to remove Chinese companies from the list of stocks it invests in as part of its pension fund for teachers.
The Teacher Retirement System of Texas (TRS) gained approval last month to move forward with a new benchmark that proportionally mixes two emerging markets indexes, including one with China and one without.
The move will cut the $184 billion pension fund’s exposure to Chinese stocks in half.
TRS previously stated that it was pursuing this course of action because the MSCI Emerging Markets Index that it used gave an “outsized weight” to China. As such, it sought to improve the diversification of the benchmark and reduce China’s allocation….