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During FY 2012, TRS realized its strongest gains from its investments in real estate, which returned +9.91%. The system also saw positive returns from its investments in bonds (+5.68%), private equity (+3.76%), hedge funds (+2.62%), real return securities (+2.54%) and stock held in U.S. companies (+0.96%). TRS investments in international stocks recorded a negative 11.71% rate of return, which affected the positive gains in the other six investment categories. All of the return rates were calculated after all investment fees had been subtracted from the total assets in each portfolio.TRS ended FY 2012 on June 30 with $36.3 billion in assets, which places it among the top 40 largest pension funds in the United States.For fiscal year 2014, TRS Board of Trustees set state government’s funding contribution at $3.438 billion, a 27.2% increase over last year’s contribution, but still not enough to fully fund TRS over the next 30 years. The annual contribution is the amount of money required by state law to fund TRS pensions during the coming year, as well as a payment on the system’s unfunded liability, which currently stands at $53.5 billion. The unfunded liability in FY 2011 was $43.5 billion.The system’s funded ratio declined during FY 2012 from 46.5% in FY 2011 to 42.1% at the end of June, 2012. The funding shortfall is due primarily to years of insufficient state funding coupled with FY 2012’s decreased investment earnings.
During FY 2012, TRS realized its strongest gains from its investments in real estate, which returned +9.91%. The system also saw positive returns from its investments in bonds (+5.68%), private equity (+3.76%), hedge funds (+2.62%), real return securities (+2.54%) and stock held in U.S. companies (+0.96%). TRS investments in international stocks recorded a negative 11.71% rate of return, which affected the positive gains in the other six investment categories. All of the return rates were calculated after all investment fees had been subtracted from the total assets in each portfolio.
TRS ended FY 2012 on June 30 with $36.3 billion in assets, which places it among the top 40 largest pension funds in the United States.
For fiscal year 2014, TRS Board of Trustees set state government’s funding contribution at $3.438 billion, a 27.2% increase over last year’s contribution, but still not enough to fully fund TRS over the next 30 years. The annual contribution is the amount of money required by state law to fund TRS pensions during the coming year, as well as a payment on the system’s unfunded liability, which currently stands at $53.5 billion. The unfunded liability in FY 2011 was $43.5 billion.
The system’s funded ratio declined during FY 2012 from 46.5% in FY 2011 to 42.1% at the end of June, 2012. The funding shortfall is due primarily to years of insufficient state funding coupled with FY 2012’s decreased investment earnings.
Kristen Heinzingereditors@plansponsor.com