NHRS Realizes 14.5% Return on Investments in Fiscal Year 2013

Trust fund assets increased to $6.5 billion as of June 30, 2013

Dec 18, 2014
  • Investments

For Immediate Release: Sept. 19, 2013
Contact: Marty Karlon, Public Information Officer, (603) 410-3594; [email protected]

CONCORD, N.H. – The New Hampshire Retirement System (NHRS, the retirement system) realized a 14.5% return on investments in the fiscal year ended June 30, 2013.

“Our investment performance reflects improved economic conditions, Fed monetary policy, and robust performance from domestic equities.  While we are pleased with these returns, we continue to emphasize that our primary focus is to meet or exceed the retirement system’s assumed rate of return of 7.75% over the long term. Our Independent Investment Committee continues to do a very effective job of carefully managing the risk, return, and liquidity of the portfolio in accordance with the investment policy set by the Board of Trustees,” said NHRS Executive Director George Lagos.

In achieving a 14.5% return, NHRS exceeded its total fund custom benchmark return of 13.5%.  The custom benchmark is composed of weighted indices that match the investment portfolio’s target asset allocation and other characteristics; it is a widely accepted method to measure a portfolio’s performance.

The three-year, five-year, 10-year, and 20-year returns for the periods ended June 30, 2013, were 12.4%, 5.6%, 7.2%, and 7.9%, respectively.  Compared to its peers in the Public Defined Benefit Net Universe, which represents 197 plans totaling more than $638 billion in assets, NHRS performed better than 90% of its peers over the one- and three-year periods and better than 70% its peers over the five-year period.

At the close of the fiscal year, the retirement system’s net assets available for benefits were $6.5 billion, an increase of $700 million over the prior fiscal year, which stood at $5.8 billion.

Further information on the retirement system’s investment performance is available here.

Detailed fiscal year 2013 information will be included in the retirement system’s comprehensive annual financial report and comprehensive annual investment report, both due out in December.

The New Hampshire Retirement System provides retirement, disability, and death benefits to its eligible members and their beneficiaries.  The State of New Hampshire and more than 475 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers.  NHRS has approximately 49,000 active members and 28,000 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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