NHRS Realizes 13.5% Investment Return in FY 2017

Trust fund assets stand at $8.29 billion as of June 30, 2017

Oct 11, 2017
  • Investments

For Immediate Release: October 11, 2017
Contact:  Marty Karlon, Public Information Officer, (603) 410-3594; [email protected]

CONCORD, NH – The New Hampshire Retirement System (NHRS, the retirement system) realized a 13.5% return on investments in the fiscal year ended June 30, 2017, outperforming the Total Fund benchmark return of 11.9%. 

The three-year, five-year, 10-year, 20-year, and 25-year returns for the periods ended June 30, 2017, were 5.8%, 9.8%, 5.7%, 6.8%, and 8.2%, respectively.  The retirement system’s assumed rate of investment return is 7.25%.

Compared to the members in the InvestorForce Public Defined Benefit Net Universe, which represents 283 public plans totaling more than $599 billion in assets, NHRS performed better than 90% of its peers over the three and five-year periods and better than 80% of its peers over the one-, 10-, 20-, and 25-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 $8.29 billion, an increase of approximately $820 million over the prior fiscal year, which stood at $7.46 billion. This is the first time NHRS assets have exceeded $8 billion.

“Our investment return was driven by strong absolute and relative performance across all asset classes,” said NHRS Executive Director George Lagos. “While we are very pleased with this return, we continue to emphasize that our primary focus is to meet or exceed the retirement system’s assumed rate of return of 7.25% over the long term. As long-term investors, we know that we will see returns above and below our assumed rate of return.”

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 is focused on the long view, and works hard to manage the risk, return, and liquidity of the portfolio in accordance with the investment policy set by the Board of Trustees,” said Lagos. “Since its creation in 2009, the IIC has measurably and substantially improved investment performance as compared to the previous structure and approach to managing the portfolio."

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

Detailed fiscal year 2017 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 nearly 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers.  NHRS has approximately 48,000 active members and 33,000 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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