1. How are LASERS assets invested?
LASERS assets are invested in diversified stock, bond,
and alternative asset portfolios. To view the target
allocation, please click on
Asset Allocation.
2. What rate of return have LASERS investments
achieved?
The Actuarial Value of LASERS investment yield was
-7.64% for the fiscal year ending June 30, 2009. LASERS
market rate of return for that period was -19.1%. For
greater detail, please click on
Performance.
3. How does the market affect my retirement benefit?
The market has no direct effect on benefits. LASERS is a
Defined Benefit Plan, meaning your retirement benefits
are set by law and guaranteed by the state regardless of
market fluctuations. Your retirement benefit is based on
your years of service, final average compensation, and
benefit accrual rate set by law.
4. What is LASERS investment target rate of return?
The actuarial required rate of return is currently
8.25%.
5. What is the process for choosing LASERS investment
managers?
The LASERS Board of Trustees chooses managers with the
advice of investment staff and an independent investment
consultant.
Typically managers are chosen starting with a public
solicitation process, followed by comprehensive analysis
and due diligence.
How is the asset allocation determined?
Allocation is determined
through the use of portfolio optimization techniques.
This entails starting with a universe of securities or
asset classes that has been valued in terms of (a)
expected return, (b) volatility of expected return, and
(c) correlation of the asset classes under
consideration. The process of portfolio optimization
involves selecting the portfolio that minimizes risk for
a given level of return.
|
