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Thursday, April 13, 2017

PSPRS investment returns through January 2017

The following table shows PSPRS' investment returns, gross of fees*, versus the Russell 3000 through January 2017, the seventh month of the current fiscal year (FY), with the FY end 2014, 2015, and 2016 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%
6/30/2015 -0.73% 4.21% -1.67% 7.29%
6/30/2016 -0.32% 1.06% 0.21% 2.14%

7/31/2016 1.62% 1.62% 3.97% 3.97%
8/30/2016 1.76% 3.40% 0.26% 4.23%
9/30/2016 0.71% 4.14% 0.16% 4.40%
10/31/2016 -0.27% 3.86% -2.16% 2.14%
11/30/2016 1.17% 5.07% 4.48% 6.71%
12/31/2016 1.30% 6.43% 1.95% 8.79%
1/31/2017 1.03% 7.52% 1.88% 10.84%

There is usually about a two-month lag in PSPRS reporting its investment returns.

January 2017 was another good month for PSPRS.  For the month, PSPRS achieved about 55% of the return of the Russell 3000, but for the year, PSPRS has returned about 69% of the Russell 3000.  Since the election, PSPRS has so far earned at least 1% every month, and PSPRS has already exceeded its expected rate of return of 7.4%.

The calendar date YTD return of Russell 3000 as of April 12, 2017 is 4.93%, 3.05% higher than the the 1.88% earned through the end of January 2017.  With the a loss of 0.77% through the first 12 days of April, this means that the Russell 3000 will have a combined return in February and March 2017 of about 3.9%.  It will be interesting to see what PSPRS returns in those months.

If PSPRS collectively owes members $220 million in refunds as was estimated when Hall was decided last year, a 1% return will earn $2.2 million on members' excess contributions every month just on the principal alone.  A rate of 3.9% will have earned PSPRS over $8.5 million in February and March 2017.  If you are personally owed a $10,000 refund, a 1% return, $100 is what PSPRS will earn off your excess contributions each month; 3.9% is $390 earned off your money in February and March.  This is what PSPRS is earning off of the hard-earned money they should never have had in the first place.  Will PSPRS Board Chairman Brian Tobin and the other Trustees do what is right for PSPRS members, or will they side with PSPRS' administration like they have in the past and let members get cheated, treated as income sources rather than the system's beneficiaries?  Based on his past actions, I have little confidence in Mr. Tobin, but hopefully some of the new members of the Board will do what they can to make sure this is fairly settled.

 * 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.  Returns, gross of fees, are used in the table for consistency.  The past two years fees have reduced the final annual reported return by about a half percent.  Returns, net of fees, were 13.28% in FY 2014, 3.68% in FY 2015, and 0.63% in FY 2016.


  1. Parker case CV2012-000456 has a telephonic conference hearing set for May 2nd. So progress in that case.

  2. Drop Zone -
    Responded to Brian Tobin article in Prescott's Daily Courier but the publisher refused to print it. Called it my "political agenda." Would like you to read it. Instant message me on FB, please.
    Mary Beth Hrin


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