Investments

NHRS pursues an investment strategy designed to achieve its long-term funding requirements. The goal is to meet or exceed the retirement system’s assumed rate of return over the long term, while at the same time managing the risk, return, and liquidity of the portfolio.

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 acceptable ranges. 

The IIC, which was established by statute on January 1, 2009, manages investments based on the trustees’ policies, continuously monitors and evaluates performance, and makes determinations regarding the hiring and retention of fund managers. By law, all IIC members must have “substantial experience in the field of institutional investment or finance.”

More information regarding the NHRS investment portfolio can be found in the Annual Comprehensive Financial Report or the Comprehensive Annual Investment Report, both of which are available here.

More detailed information regarding the NHRS investment policies can be found in the NHRS Investment Manual.

Investment Performance

The retirement system realized a -6.1% return on investments in the fiscal year ended June 30, 2022. 

The three-year, five-year, 10-year, and 25-year returns for the periods ended June 30, 2022, were 7.1%, 7.2%, 8.5%, and 6.9%, respectively.  All returns are net of fees.  The retirement system’s assumed rate of investment return is 6.75%.

NHRS FY 2022 Investment Results

Quarterly Investment Updates

Time-Weighted Annual Returns Since 2003

Assumed Rate of Return

The current assumed rate of return is 6.75 percent. This rate represents what the Board of Trustees believes the plan can realistically earn from its investments on an annual basis, when averaged over the long-term. In any given year, investment returns are likely to be higher or lower than the long-term assumed rate.

The determination of an investment return assumption, which is typically based on a 30- to 50-year time horizon, involves careful review of several financial, economic, and market factors. This long-term approach promotes predictability and stability of plan costs and contribution rates. The assumed rate of return – along with other demographic and economic assumptions – is regularly reviewed by the Board of Trustees and may be adjusted periodically to better reflect the retirement system’s actual experience.