US - Pennsylvania Public School Employees' Retirement System (PSERS) has announced gains of nearly 23% for the fiscal year ended 30 June 2007.
It means PSERS has almost tripled its annual actuarial rate of return assumption of 8.5% and marked a fourth fiscal year of strong investment growth.
PSERS’ said its assets under management (AuM) had grown over US$10bn from $57bn in 2006 to over $67bn this year.
Melva Vogler, chairman of PSERS, said: “PSERS investment staff have worked hard to earn exceptional returns for the fund. As a result, they have met and exceeded performance benchmarks and have made PSERS one of the top performing public pension funds in the nation.”
The current fiscal year end return places PSERS in the top 1% of the public pension plan database compiled by Wilshire Associates.
Jeffrey Clay, executive director at PSERS, noted the impact of the fund’s investment performance on employer contributions to the fund.
He said: “PSERS’ investment staff have made significant progress in reducing the projected employer contribution rate increase in fiscal year 2012-2013. The past four years of exceptional investment returns have decreased the amount of contributions needed from school employers and commonwealth taxpayers in fiscal year 2012-2013 by $2.3bn.”
As of 30 June 2007, PSERS had 29.7% of its assets in US stocks; 30.6% in non-US stocks; 17.2% in US and global fixed income investments; and 8.8% in private markets.
It also had 8.0% in real estate, 2.5% in commodities, and 3.2% in cash and cash equivalents.
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