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Wednesday, June 10, 2015

PSPRS investment returns through March 2015

The following table shows PSPRS' investment returns, gross of fees*, versus the Russell 3000 for March 2015, the ninth month of the current fiscal year, with the June 2014 returns included for comparison:

Report PSPRS PSPRS Russell 3000 Russell 3000
Date Month End Fiscal YTD Month End Fiscal YTD
6/30/2014 0.78% 13.82% 2.51% 25.22%

7/31/2014 -0.67% -0.67% -1.97% -1.97%
8/31/2014 1.73% 1.05% 4.20% 2.14%
9/30/2014 -1.53% -0.49% -2.08% 0.01%
10/31/2014 0.40% -0.09% 2.75% 2.76%
11/30/2014 0.92% 0.82% 2.42% 5.25%
12/31/2014 -0.18% 0.64% 0.00% 5.25%
1/31/2015 0.01% 0.65% -2.78% 2.32%
2/28/2015 1.91% 2.58% 5.79% 8.25%
3/31/2015 0.83% 3.42% -1.02% 7.15%

There is usually about a two-month lag in PSPRS reporting its investment returns.  March 2015 was a particularly good month for PSPRS, and not just because it had a positive return. Overall, PSPRS bested the Russell 3000 by a whopping 1.85%, and if we look at the individual returns for each of the eleven different asset classes, PSPRS did better than the Russell 3000 in all eleven.  The March 2015 returns ranged from -0.73% in its non-US equity investments to 3.58% in its private equity investments.  PSPRS had positive returns for March in all its asset classes, except US and non-US equity.  Of course, this is only one month's worth of returns, and while it will still be a stretch for PSPRS to reach it expected rate of return of 7.85% by the end of June 2015, this is a bit of good news during some rather discouraging times.

The Russell 3000 shows a 0.45% gain for April 2015.  The May 2015 return for the Russell 3000 has not yet been posted, but daily returns through June 9, 2015 show that the Russell 3000 has gained another 0.31% since the end of April.  Today (June 10, 2015) the markets are having another big day with the DJIA up about 1.30% and the NASDAQ up about 1.25%, so it is anyone's guess how the markets will end on June 30, 2015 when PSPRS' fiscal year ends.

* Returns, gross of fees, are used because PSPRS usually does not report returns, net of fees paid to outside agencies, except on the final report of the fiscal year.  The past two years fees have reduced the final annual reported return by about one-half of a percent.

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