PSRS/PEERS Achieves Fourth Highest Public Pension Private Equity Return

Private equity was the best performing asset class for public pensions, and PSRS/PEERS’ private equity program had the 4th highest return out of 176 public pension plans surveyed. 

This achievement was reported by the American Investment Council (AIC) in its July 2020 Public Pension Study. The study is conducted annually to examine the investments and returns of America’s largest public pension funds. 

PSRS/PEERS’ private equity investments returned 16.0% based on June 30, 2019, 10-year annualized information. By comparison, the median private equity performance for all plans in the study was 13.7% over the same period.

As of June 30, 2020, private equity comprised 13% of the PSRS/PEERS investment portfolio. In total, the Systems currently have a 23.5% allocation to Private Risk Assets which includes private equity, private real estate and private credit. Private Risk Assets are typically long-term investments which are not publicly traded and are relatively illiquid. This offers the potential for substantially higher returns, (with a commensurate level of risk).

 

"Our sole focus is to provide consistent, long-term investment returns that can support retirement benefits and provide financial security to the members of PSRS and PEERS as they prepare for tomorrow," said PSRS/PEERS Chief Investment Officer Craig Husting. "Private Risk Assets are one of our three primary investment categories, and they have served us well. Private Risk Assets remain a focus for us as we begin fiscal year 2021."

The full AIC study can be found at https://www.investmentcouncil.org/pensions/