Pennsylvania PSERS earns 9.27% in FY 2018

The Public School Employees’ Retirement System (PSERS) has posted a positive return of 9.27 percent for the fiscal year ended June 30, 2018, and earned $4.7 billion in investment income net of fees.

PSERS CIO James Grossman Jr. said, “Our fiscal year performance was driven by very strong performance in private equity, U.S. equity, non-U.S. equity, private real estate and private credit.  While risk-on assets had strong returns, most asset classes had positive returns this past fiscal year as interest rates remained low and the U.S. economy received a boost from tax cuts. Active management had a strong year during this past fiscal year, adding over $650 million, net of all fees and costs, in incremental value over the board’s passive policy benchmark.” He said, “However, most of the returns were earned in the first half of fiscal year 2018.  The second half of fiscal year 2018, and continuing into fiscal year 2019, has been more challenging as interest rate hikes i