Posted a 5.1 percent return
FRANKFORT, Ky. (Aug. 27, 2015) — Kentucky teachers’ pension investments posted a 5.1 percent return and outperformed their peers during the recently concluded fiscal year, leaders of the fund were told Thursday.
That gain for the Kentucky Teachers’ Retirement System bettered the 3.1 percent average for U.S. pension systems with assets of more than $1 billion. KTRS staff presented the pension system’s financial results for the year ended June 30 to the Board of Trustees’ Investment Committee at its quarterly meeting.
“The fact that our results exceeded most of our peers shows our investment team achieved great returns in a challenging marketplace,” said Gary Harbin, executive secretary of the teachers’ retirement system.
The one-year result puts the Kentucky teachers’ pension fund in the top 6 percent of similar pension plans nationwide.
An examination of the Kentucky teachers’ investments by the global trade analysis firm Abel Noser found $2.7 million saved over the year because of the timing of KTRS’ 143 million shares traded and lower commissions paid compared to other pension plans.
The Kentucky Teachers’ Retirement System is the largest financial institution in the commonwealth, regulated under state and federal law, with $18.5 billion in assets to provide for the future wellbeing of 144,000 teachers and others who are members. The teachers’ fund pays about $2 billion a year in retirement and health care benefits to its members, 92 percent of whom live in Kentucky across all 120 counties.