PSRS/PEERS Fiscal Year 2012-2013 Investment Returns Exceed Goal, Add Over $3.6 Billion in Assets

The Public School and Education Employee Retirement Systems of Missouri's (PSRS/PEERS) strong investment program, coupled with strong overall returns in the global stock market, resulted in the achievement of a 12.6% investment return for the fiscal year ended June 30, 2013.

This return is well above the 8% investment return goal set by the Systems. The PSRS/PEERS market value of invested assets increased through investment earnings by over $3.6 billion from the previous year.

The total plan returns exceeded both the long-term investment goal (actuarially assumed return) of earning 8%, and the total plan policy benchmark* return of 11.2%. Over long periods of time, PSRS/PEERS also continues to produce investment returns that meet or exceed the Systems' objectives. The annualized investment return for the Systems over the last 30 years is 9.3%.

2012-2013 Investment Returns
PSRS/PEERS Investment Return 12.6%
Return Goal  8%
Benchmark Return 11.2%

For the year, the PSRS/PEERS internal investment staff and external investment managers added almost $380 million in value above the policy benchmark, net of all fees and expenses.

"Our goal is to provide solid retirement benefits to our members," says Steve Yoakum, PSRS/PEERS executive director. "Our internal investment staff continues to skillfully navigate volatile markets and produce competitive returns at a lower level of risk than most large public pension plans throughout the country. This year, we added significant value above our benchmarks, which helps maintain consistent contribution rates for all of our members and school districts."

PSRS/PEERS maintains a diversified asset allocation of stocks, bonds, real estate, hedged assets and private equity.

2012-2013 Returns by Asset Class
U.S. Stocks 23.0%
Global Stocks 15.9%
Private Equity 14.8%
Real Estate 12.1%
Hedged Assets 8.5%
Treasury Bonds -1.8%

The market value of invested assets for PSRS/PEERS was approximately $33.5 billion on June 30, 2013, making the joint entity larger than all other public retirement plans in Missouri combined, and the 45th largest defined benefit plan in the United States. For the most recent PSRS/PEERS investment news, visit us on the web at

*The plan policy benchmark is the rate of return achieved by a group of stocks and bonds with overall performance used by investors like PSRS/PEERS as a standard to measure investment performance.

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