Total Fund Investment Returns

As of June 30, 2016

Investment Returns Chart

The Board has established a long-term objective to achieve a total investment return of at least 7.75% 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' long-term investment objective of 7.75% was lowered from 8% at the Board of Trustees meeting in June 2016 as a result of a recently conducted asset liability study.

For the fiscal year ended June 30, 2016 the Systems' earned an investment return of 1.8%. The total plan return was equal to the policy benchmark of 1.8% but fell short of the long-term investment objective of 7.75% as a result of recent global equity market weakness.

The Systems' annualized return for the 7-year time period exceeds the long-term investment objective while the 10-year timeframe is less than the long-term objective reflecting the lingering effects of the credit crisis and extreme market volatility beginning in 2008. However, over long periods of time, PSRS and PEERS continue to produce investment returns that meet or exceed the Systems' objective. The annualized investment return over the last 30 years is 8.3%.
  • *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, 14.4% Barclays U.S. Treasury: Intermediate Index, 15.0% Barclays U.S. Intermediate Credit Index, 7.5% NCREIF Open End Diversified Core Equity Index, 4.0% Barclays U.S. TIPS 1-10 Year Index, 2.0% Merrill Lynch High Yield Master II Index, and 1.6% Barclays U.S. Treasury: Long Index.