Next year TRS members’ investment choices, collectively known as the Passport Funds, will change. TRS plans to add two funds and discontinue a third.
As of Jan. 1, 2020, TRS will introduce two new choices:
- the U.S. Equity Index Fund
- the International Equity Index Fund
As of April 1, 2020, TRS will discontinue the Inflation Protection Fund.
The TRS Passport Funds are available to all participants in the Tax-Deferred Annuity Program. They also constitute a portion of the Qualified Pension Plan accounts of TRS members in Tiers I and II, if applicable.
TRS is committed to providing a diverse array of investment choices in the Passport Funds. The new funds complement the existing options, offering members an opportunity to broaden their investment portfolios. With the U.S. Equity Index Fund, members can invest in a portfolio that closely tracks the total return of the broad U.S. stock market, including large-, mid- and small- capitalization stocks.
Similarly, the International Equity Fund will offer members access to a portfolio that closely tracks the total return of foreign stock markets in aggregate, including both developed and emerging markets.
The Teachers’ Retirement Board recently determined that, given the evolution of the Passport Funds investment menu, the Inflation Protection Fund was no longer necessary to provide members with a range of investment options across the risk/return spectrum. This decision was made after discussions with the board’s investment advisers, who continually review and evaluate the choice of funds.
If you have investments in the Inflation Protection Fund, you may redirect them to other Passport Funds at any time before March 31, 2020. On April 1, 2020, TRS will automatically transfer any remaining investments in the Inflation Protection Fund to TRS’ Balanced Fund. The Balanced Fund is a moderately conservative investment option that includes exposure to global equities as well as bonds.
Smooth transition planned
This summer, TRS will directly contact all members who have investments in the Inflation Protection Fund so they have sufficient time and information to make an informed investment decision. Meanwhile, you can find schedules and guidelines for investment changes on the TRS website.
Also this summer, TRS will publish detailed information on its website about the two new investment choices: the U.S. Equity Index Fund and the International Equity Index Fund.