Administration

Illinois TRS Investment Return Declined in FY 2012

By Kristen Heinzinger editors@plansponsor.com | October 26, 2012
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October 26,2012 (PLANSPONSOR.com) – The Illinois Teachers’ Retirement System (TRS) investments rate of return dropped from 23.6% last year to 0.76% for fiscal year 2012.

“We will always take a long-term view of investment returns because TRS has to be there for our members for decades to come,” said TRS Executive Director Dick Ingram. “We didn’t do handsprings over 23.6% last year and we aren’t crying over 0.76% this year. It is the long-term results that matter and the system’s 20-year investment return at the end of June was 7.73%.”

Ingram added that the 0.76% rate of return for TRS falls in line with the investment returns for FY 2012 being reported by other large public pension systems across the country. Many saw their investment returns drop from more than 20% to less than 4% in a year’s time. 

Between April and June, TRS investments recorded a negative 1.52% return. However, between July and September, TRS investments saw a positive 4.8% return. While the TRS investment return was 0.76% for the 12-month period that ended in June, for the 12-month period ending on September 30, the TRS rate of return was a positive 16.4%. In the last 10 years, TRS investments have recorded positive returns in eight years, with the two years of negative returns seen during the global financial collapse of 2008 and 2009.