A writer must “know and have an ever-present consciousness that this world is a world of fools and rogues… tormented with envy, consumed with vanity; selfish, false, cruel, cursed with illusions… He should free himself of all doctrines, theories, etiquettes, politics…” —Ambrose Bierce (1842-1914?). “The nobility of the writer's occupation lies in resisting oppression, thus in accepting isolation” —Albert Camus (1913-1960). “What are you gonna do” —Bertha Brown (1895-1987).
The Teachers Retirement System of Illinois Rate of Investment Return for 2018 and TRS FY 2018 Cash Flow Summary
TRS EARNS AN 8.45% RATE OF INVESTMENT RETURN IN FISCAL YEAR 2018:
Published date from TRS: September 18, 2018
SPRINGFIELD, IL – Teachers’ Retirement System investments generated a positive 8.45 percent rate of return, net of fees, during fiscal year 2018 – a return that exceeded the System’s custom investment benchmark of 8.19 percent.
TRS ended FY 2018 on June 30 with $51.5 billion in assets, an increase of 4.2 percent during the year. Gross of fees, the TRS return for FY 2018 was 9.17 percent. TRS long-term investment returns continue to exceed the System’s goal of 7 percent. For FY 2018, the 30-year net of fees return was 8.4 percent; and 9.2 percent for 40 years.
“TRS continues to earn better-than-expected returns on its investments using a diversified strategy that carries less risk than most of our peer systems’ investments,” said TRS Executive Director Dick Ingram. “That’s good news for our members because the financial challenges TRS faces now and in the future require us to balance two critical mandates: Do everything we can to safeguard our members’ money while prudently maximizing investment revenue.
“Because state government has failed to adequately fund TRS for the last 80 years, the system only has 40 cents in the bank for every $1 we owe each of our members,” Ingram added. “Risk management is critical because every dime is important. We know we can’t invest our way out of our funding shortfall. Our future sustainability relies on consistent and adequate state funding to pay down this debt.”
Ingram stressed that the 30-year and 40-year rate-of-returns are the most important numbers in the FY 2018 investment data. These time frames not only reflect the long-term relationship that TRS has with its members but indicate a successful investment program that values steady growth and strong risk management over several generations.
In the last 10 years, TRS investments have recorded positive returns in nine years with one year of negative returns realized during the worldwide financial crisis of 2009. All returns in this chart are net of fees.