NYSTRS invests in several diverse asset classes.
This diversification of assets 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.
NYSTRS' total fund return, net of fees, for the fiscal year ended June 30, 2016 was 2.35%. While it marked the second consecutive year the System fell short of its expected rate of return of 7.5%, NYSTRS has posted positive returns for seven consecutive years. (Note: The 7.5% assumed rate of return was effective with the actuarial valuation as of June 30, 2015, representing a 0.5% decline from the previous assumed rate.) Our 25-year and 20-year annualized net rates of return were 8.69% and 7.61%, respectively.
Our focus remains on investing for the long term, utilizing a disciplined investment approach with a strong emphasis on risk control. The fund is managed at a very low cost compared to the value of assets with approximately 63% of assets managed internally by System staff. Investment management expenses and fees for the externally managed or serviced portfolio equate to an annual cost of about 47 basis points, while the internally managed portfolio operates at an annual cost of approximately 5 basis points. Combined, the investment portfolio operates at an average annual cost of 23.9 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.
Equity Holdings: PDF | Excel
Fixed Income Holdings: PDF | Excel