|Serving New York Educators Since 1921|
NYSTRS invests the System's funds in several diverse classes of assets, including equities, bonds and real estate. This diversification helps us earn the highest possible long-term rate of return within appropriate risk levels. In turn, this enables us to pay guaranteed benefits to members and their beneficiaries at the lowest possible cost to participating employers and the taxpayers that fund them.
The System's long-term investment objective is to achieve an annualized rate of return of 8.0%. Just five years removed from the global financial crisis, the System's total portfolio posted a positive return for the fourth consecutive year. The 13.7% return for the fiscal year ended June 30, 2013 was the third double-digit return posted since 2010 and it exceeded the assumed annual rate of return of 8.0% by nearly 600 basis points.
The fund is managed at a very low cost compared to the value of assets. Approximately 60% of assets are managed internally by System staff. Investment management expenses and fees for the externally managed or serviced portfolio equate to an annual cost of approximately 50 basis points, while the internally managed portfolio operates at an annual cost of approximately 5 basis points. Combined, the investment portfolio operates at an annual cost of 25 basis points.
The System's most-recent list of investments is below. We update this list approximately two weeks after the end of each quarter.