New Hampshire Retirement System, Concord, recorded a net return of -6.1% for the fiscal year ended June 30, the pension fund's first negative return since 2009, the pension fund announced Friday. However, the return outperformed the pension fund's benchmark of -9.3%.
The assumed rate of return is 6.75%.
"As a result of several unforeseen events, global markets were severely challenged in the spring of 2022," said Jan Goodwin, executive director, in a news release Friday.
"As long-term investors, we know that we will see returns above and below our assumed rate of return in any given year," Ms. Goodwin said. "Because investment results are smoothed on a five-year rolling average, the loss this year won't be recognized all at once, which is the same way the 29.4% return we experienced in FY 2021 was treated."
The pension fund had assets of $10.75 billion as of June 30, down from $11.6 billion for the fiscal year ended June 30, 2021.
"Like all investors, NHRS has dealt with a volatile and challenging investment landscape in recent years," Ms. Goodwin said. "We continue to emphasize that our primary focus is to meet or exceed the retirement system's assumed rate of return of 6.75% over the long term."
For multiyear periods, the annualized net return was 7.1% for three years, 7.2% for five years, 8.5% for 10 years and 6.9% for 25 years.
