US - The Teachers' Retirement System of the State of Illinois (TRS) earned a bumper 19.6% on its investments during the fiscal year ended 30 June 2007.
TRS said this was a level not seen since the 1980s and among the highest in TRS history. It means TRS assets rose to a record high of US$41.8bn, up from $36.5bn a year ago.
Overall, TRS earned annualised returns of 14.3% for the three years ended 30 June 2007, 12.9% for the five year period and 9.5% over the 10-year period.
The TRS Total Fund also substantially outperformed its performance benchmark of 17.9% for the one year period ending 30 June 2007.
In terms of the performance of different asset classes held by TRS, private equity led with a 31.3% return in 2007. Meanwhile, international equity posted a 30.0 return and real estate earned a 26.2% return for the same period.
Cynthia O’Neill, TRS investment committee vice-chair, said the TRS Trust Fund was structured in a way that enabled it to effectively weather changing market conditions and continue achieving excellent returns.
Molly Phalen, TRS board of trustees vice-president, said: “TRS does its homework and, as a result the system is poised for continued success.”
TRS serves 325,000 members and annuitants.
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers