FRS Pension Plan Posts Another Year of Strong Investment Performance

Aug 19 • 535 Views • View Comments

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FRS Pension Plan Posts Another Year of Strong Investment Performance
Long-term Returns Remain on Track

Tallahassee, FL – The State Board of Administration of Florida released preliminary investment performance figures for the fiscal year ending June 30, 2014 showing the FRS Pension Plan earning a 17.40% return, beating its benchmark of 17.02%, and ending the year with a market value of $149.1 billion.  This represents a fund balance increase of $16.7 billion more than last year’s fiscal year-end figure, after net distributions of $5.9 billion to participants.  Audited financial figures will be released later this year.

All asset classes earned positive returns during the fiscal year, led by the Global Equity asset class which earned 23.52%.  Strategic Investments, Real Estate and Private Equity asset classes each earned 13.19%, 14.92% and 19.88% respectively.  Fixed Income and Cash each earned 3.78% and .22% respectively.

Ash Williams, Executive Director and Chief Investment Officer for the SBA said; “While recovery of the financial markets continues and we are certainly pleased with our current performance, we can’t lose sight of the fact that it is the long-term performance that matters most. The 20 and 25 year periods have generated returns of 8.83% and 9.02% respectively.”   Mr. Williams attributed the long-term performance to “prudence, patience, and diversification.”

Florida Retirement System Investment Plan

The FRS Investment Plan, established to provide Florida’s public employees with a flexible alternative to the traditional pension plan, also posted year-end gains in returns and participation.  The one-year return based on aggregate employee fund selection was 15.51%, beating a benchmark of 15.05%.  The benchmark is based on the weighted aggregate of the performance of various indices representing each member’s allocation.

During the fiscal year ending June 30, 2014, 25% of newly hired employees elected to join the Investment Plan, and 5,721 Pension Plan members used their second election to switch to the Investment Plan resulting in a record high 157,227 member accounts.  Additionally, the Plan’s year-end assets of $9.04 billion were also at a record setting level, representing an increase of approximately 14.7% over last year’s fiscal year-end figure.

The State Board of Administration is a body of Florida’s state government that provides a variety of investment services to various governmental entities. These include managing the assets of the Florida Retirement System, the Local Government Surplus Funds Trust Fund (Florida PRIME), the Hurricane Catastrophe Fund, and over 30 other mandates.

John Kuczwanski, Communications Manager
State Board of Administration of Florida
1801 Hermitage Boulevard, Suite 100
Tallahassee, Florida 32317-3300
(850) 413-1254 – Phone
(850) 413-1255 – Fax


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