Total Fund Investment Returns
As of March 31, 2019
The Board has established a long-term objective to achieve a total investment return of at least 7.5% per year and a real rate of return of at least 5.25% per year. The real rate of return is the rate by which the long-term total return exceeds the inflation rate. The Systems' long-term investment objective of 7.5% was lowered from 7.6% at the October 2018 Board of Trustees meeting effective for July 1, 2018. The reduction in the long-term objective is based on capital market expectations and the belief that expected investment returns going forward will be lower than historical returns.
The Systems' investment return of 5.0% for the one-year period ended March 31, 2019 is less than the long-term objective as a result of recent global equity market weakness. However, over long periods of time, PSRS and PEERS continue to produce investment returns that meet or exceed the Systems' long-term investment objective. The annualized investment return over the last 30 years is 8.4%.
- *Effective July 1, 2013 all assets are held in the Missouri Education Pension Trust (MEPT) for the exclusive benefit of the Public School and Education Employee Retirement Systems of Missouri.
- **The Policy Benchmark is comprised of 39.0% Russell 3000 Index, 16.5% MSCI ACWI ex-USA Index, 16.0% Bloomberg Barclays U.S. Treasury, 15.0% Bloomberg Barclays U.S. Intermediate Credit Index, 7.5% NCREIF Open End Diversified Core Equity Index, 4.0% Bloomberg Barclays U.S. TIPS 1-10 Year Index, and 2.0% ICE BofAML U.S. High Yield Master II Index.
- ***The Retirement Systems’ 2019 Fiscal Year began on July 1, 2018.