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ASRS Investment Returns Outpace Pension Plan Peers

The financial health of the ASRS significantly depends on our ability to generate attractive long-term returns from our investments while moderating risk. This helps to assure the security of retirement and member benefits while also keeping down the ongoing contribution rates for our active members and employers.

At the end of each fiscal year – June 30th – a rate of return is calculated for the ASRS investment portfolio, which impacts future contribution rates.

The final rate of return for the year ended June 30, 2019 was 6.6 percent. Although below our assumed long-term rate of return of 7.5 percent, the ASRS again outperformed peer public pension plans, placing the ASRS in the top 20th percentile of peer investment returns for the year.

Our 10-year return was 10.4 percent, placing the ASRS in the top 4th percentile of peer investment returns.

The ASRS portfolio of approximately $41 billion is allocated in a strategic mix of U.S. and international equities (approximately 50%), credit, including private debt (20%), and interest-sensitive fixed income, including bonds (10%) and real estate (20%). 

This strategic asset allocation, combined with the tactical decisions made by our investment staff, produced returns that have outpaced benchmarks and outperformed peers by significant margins.

Over the past 10 years, those decisions have added approximately $4.8 billion in additional value to the ASRS portfolio.

 You can learn more at ASRS Investments.


by Dave Cannella, Media Relations

This article was first published in Expanding Your Financial Horizons, 2019 Q4

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