Total Fund Investment Returns
As of March 31, 2013
|1 Year*||3 Years||5 Years||7 Years||10 Years|
The Board has established a long-term goal to achieve a total investment return of at least 8% per year and a real rate of return of at least 5.5% per year. The real rate of return is the rate by which the long-term total return exceeds the inflation rate. The Systems’ annualized returns for the one- and three-year time periods significantly exceed the long-term investment objective of 8% as a result of recent positive markets. The five-, seven- and 10-year timeframes exhibit annualized returns that are less than the long-term objective reflecting the lingering effects of the credit crisis and extreme market volatility beginning in 2008. The 10-year annualized total returns of 6.9% for PSRS and 6.8% for PEERS equal or slightly trail, respectively, the policy benchmark return of 6.8%.
* The Retirement Systems’ 2013 Fiscal Year began on July 1, 2012.
**The Policy Benchmark is comprised of 39% Russell 3000 Index, 16% Barclays Capital Treasury Blend, 16.5% MSCI All Country World ex-U.S. Free Index, 15% Barclays Capital Intermediate Credit Index, 7.5% NCREIF Property Index, 4% Barclays Capital U.S. TIPS 1-10 Year Index and 2% Merrill Lynch High Yield Master II Index.