Public Plans Reach Highest Assets Since Q208

July 1, 2011 (PLANSPONSOR.com) – A new report from the U.S. Census Bureau shows that for the 100 largest public employee retirement systems in the country, total holdings and investments were up three consecutive quarters at the end of the first quarter of 2011, reaching the highest level since the second quarter of 2008.

Total holdings and investments quarter-to-quarter increased $93.9 billion or 3.6% to $2.7 trillion. Total holdings and investments year-to-year rose $253.5 billion or 10.2% from $2.5 trillion in the first quarter of 2010. This was the sixth consecu­tive quarter with a year-to-year increase, the report said.  

Employee and government contributions combined totaled $29.8 billion in the first quarter of 2011, year-to-year decreasing $1.7 billion or 5.3% from $31.5 billion in the first quarter of 2010. While both employee and government contributions decreased, government contributions fell at the faster rate of 5.7% year-to-year, compared to employee contributions which fell at a rate of 4% year-to-year, the Census Bureau found.  

Holdings of corporate stocks increased $29.3 billion or 3.4% to $896.4 billion in the first quarter of 2011. Corporate stocks year-to-year were up $52.9 bil­lion or 6.3% from $843.6 billion in the first quar­ter of 2010. Corporate stocks comprised just under a third (32.8%) of the total cash and security holdings of major public employee retirement systems for the current quarter.  

Corporate bonds were down $0.6 billion or 0.1% to $430 billion in the first quarter of 2011. Corporate bonds year-to-year increased $10.2 billion or 2.4% from $419.8 billion in the first quarter 2010. Corporate bonds comprised just under a sixth (15.7%) of the total cash and security holdings of major public employee retirement systems for the current quarter.  

International securities increased $18.8 billion or 3.8% to $507.6 billion in the first quarter of 2011. This was the highest level since the beginning of this investment category’s data collection eight years ago (2002:Q4), the report said. International securities year-to-year rose $78.5 billion or 18.3% from $429.1 billion in the first quarter of 2010. This was the sixth consecu­tive quarter with a year-to year increase. International securities comprised just under a fifth (18.5%) of the total cash and security holdings of major public employee retirement systems for the current quarter.  

Federal government securities increased after two consecutive quarterly declines, up $2.3 billion or 1.4% to $167 billion in the first quarter of 2011. Federal government securities year-to year rose $4.2 billion or 2.6% from $162.9 billion in the first quarter of 2010. This was the fifth consecutive quar­ter with a year-to-year increase. Federal government securities comprised 6.1% of the total cash and security holdings for the current quarter.

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