Investment Frequently Asked Quesions
How are LASERS assets invested?
LASERS assets are invested in diversified stock, bond, and alternative asset portfolios. See Asset Allocation for details.
What rate of return has LASERS investments achieved?
The actuarial value of LASERS investment yield was 7.05 percent for the fiscal year ending June 30, 2022. LASERS market investment rate of return for that period was -7.2 percent. See Performance for details.
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. Retirement benefits are based on years of service, final average compensation, and the benefit accrual rate set by law.
What is LASERS target investment rate of return?
The LASERS Investment team strives to earn at least 7.6 percent over the long-term.
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. Managers are chosen after a thorough comprehensive analysis and due diligence process.
How is the asset allocation determined?
LASERS target allocation is determined after a comprehensive annual study that is conducted by internal staff in conjunction with LASERS external investment consultant. Key inputs into the study include historical returns, relative value, and the likelihood of mean reversion. Risk budgeting and scenario analysis are tools used in the study. The primary focus of the asset allocation is to maintain a broadly diversified portfolio while achieving the target rate of return with the least possible amount of risk.