NHRS Realizes 3.5% Return on Investments in Fiscal Year 2015

Trust fund assets increased to $7.53 billion as of June 30, 2015

Oct 09, 2015
  • Investments

For Immediate Release: October 9, 2015
Contact:  Marty Karlon, Public Information Officer, (603) 410-3594; [email protected]

CONCORD, NH – The New Hampshire Retirement System (NHRS, the retirement system) realized a 3.5% return on investments in the fiscal year ended June 30, 2015.

The three-year, five-year, 10-year, and 20-year returns for the periods ended June 30, 2015, were 11.7%, 11.6%, 6.9%, and 7.8%, respectively.  The retirement system’s assumed rate of investment return is 7.75%.

Compared to the members in the InvestorForce Public Defined Benefit Universe, which represents 242 public plans totaling more than $435 billion in assets, NHRS performed better than 70% of its peers over the one-year period and better than 90% its peers over the three- and five-year periods. All returns are net of fees.

At the close of the fiscal year, the retirement system’s unaudited net position held in trust was $7.53 billion, an increase of approximately $120 million over the prior fiscal year, which stood at $7.41 billion.

“After enjoying double-digit returns in four of the previous five years, NHRS – like all investors – dealt with a very challenging and volatile investment landscape over the past year,” said NHRS Executive Director George Lagos. “These challenges included the re-emergence of Greek debt issues, China’s slowing growth, a strong dollar, and a low and uncertain interest rate environment.”  

NHRS pursues a long-term investment strategy designed to meet its funding requirements.  The Board of Trustees, with research and input from NHRS investment staff, outside experts, and a recommendation from the Independent Investment Committee (IIC), set an investment policy that includes asset allocation targets and ranges.

The five-member IIC continuously monitors and evaluates performance, and makes determinations regarding the hiring and retention of fund managers. 

“The Independent Investment Committee works diligently to prudently manage the risk, return, and liquidity of the portfolio in accordance with the investment policy set by the Board of Trustees,” said Lagos. “Our focus remains on meeting or exceeding the retirement system’s assumed rate of return of 7.75% over the long term. The assumed rate of return is examined on a regular basis and will be reviewed in 2016 by both the Board and the IIC as a part of the retirement system’s actuarial experience study, which is conducted every five years.”

Further information on the retirement system’s investment performance is available online at: https://www.nhrs.org/funding-and-investments/investments

Detailed fiscal year 2015 financial and investment information will be included in the retirement system’s comprehensive annual financial report and comprehensive annual investment report, both due out in December.

About NHRS

NHRS provides retirement, disability, and death benefits to its eligible members and their beneficiaries.  The State of New Hampshire and more than 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers.  NHRS has approximately 48,300 active members and 31,000 pension recipients. NHRS administers a defined benefit plan qualified as a tax-exempt entity under sections 401(a) and 501(a) of the Internal Revenue Code. 

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