Tennessee Valley Retirement Approves Updated Allocation Targets; Terminates EM Debt Manager

The Tennessee Valley Authority Retirement System has approved their new target asset allocation mix according to minutes from the September 21, 2023 board meeting.

The System’s general consultant, Wilshire, assisted with the approved allocation mix. Wilshire suggested increasing long duration fixed income, slightly increasing expected returns, slightly reducing overall expected volatility, improve downside risk, and move the fund slightly further in the direction of long-term de-risking.

New target allocation mix:

Growth Assets: 17%
Defensive Growth Assets: 30% (-7.5%)
Defensive Assets: 33% (+13%)
Inflation Sensitive Assets: 20% (-5%)

Defensive Growth Assets decreased 7.5%, Defensive Assets increased 13%, and Inflation Sensitive Assets decreased 5%. As a result, the emerging markets debt allocation will be eliminated and the TCW account will be terminated.

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