Total Fund Investment Returns
(as of March 31, 2008)
| Fiscal Year To Date* | 1 Year |
3 Years |
5 Years |
7 Years |
10 Years |
||
|---|---|---|---|---|---|---|---|
PSRS |
-3.8% |
0.3% |
8.0% |
10.6% |
6.8% |
6.3% |
|
PEERS |
-3.8% |
0.2% |
8.0% |
10.6% |
6.8% |
6.3% |
|
Policy Benchmark** |
-3.7% |
0.0% |
7.5% |
10.6% |
6.6% |
6.0% |
|
Public Fund Median*** |
-3.3% |
1.4% |
8.6% |
12.0% |
7.3% |
6.3% |
The Board has established a long-term goal to achieve a total investment return of at least 8.0 percent per year and a real rate of return of at least 4.75 percent per year. The real rate of return is the rate by which the long-term total return exceeds the inflation rate. The annualized investment returns for the one-, seven- and ten-year time periods for PSRS and PEERS are less than the long-term investment objective of 8.0 percent reflecting the significant market decline experienced during the first quarter of 2008. The three-year and five-year returns remain above the long-term objective as a result of the superior performance achieved since the recent equity market bottom in September 2002. The ten-year annualized total return of 6.3 percent for PSRS and PEERS exceeds the policy benchmark return of 6.0 percent.
* |
The Retirement Systems’ 2008 Fiscal Year began on July 1, 2007. |
** |
The Policy Benchmark is comprised of 38.5% Russell 3000 Index, 22% Lehman Aggregate Index, 17% MSCI All Country World ex-U.S. Free Index, 4% MSCI All Country World Free Index, 3.75% Lehman U.S. TIPS Index, 3.5% NCREIF Property Index, 2.25% S&P 500 Index, 1.75% Merrill Lynch High Yield Master II Index, 1.75% London Interbank Offered Rate (LIBOR), 1% Russell 2000 Index, 1% FTSE NAREIT Equity Index, 1% Absolute Return of 8%, 1% MSCI World Index - Developed Markets (local currency), 0.75% MSCI EAFE Index and 0.75% Alerian MLP Index. |
*** |
The Trust Universe Composite Series (TUCS) median fund return reflects the performance of a large universe of public pension plans. |
