State retirement system's investments net less than 1% over 12 months

CONCORD — New Hampshire Retirement System (NHRS, the retirement system) investments returned returned just seven-tenths of one percent in the fiscal year ending June 30, based on preliminary estimates.

"These returns are reflective of a difficult and volatile market environment," said NHRS Executive Director George Lagos. "From the U.S. debt ceiling showdown last August to the ongoing European debt crisis, the past 12 months have been challenging for all investors."

The official rate of return on the pension fund won't be finalized until later this year, once returns on the real estate and private equity portfolios are verified.

The retirement system's assumed rate of return for planning purpses is 7.75 percent.

"Last year, when the retirement system posted its best returns in 25 years, our message was the same: Year-to-year market fluctuations are going to occur; our focus is to meet or exceed the retirement system's assumed rate of return over the long term, while carefully managing the risk, return, and liquidity of the portfolio," Lagos said. "The global markets continue to be volatile due to slow GDP growth, the European debt crisis, the sustained high unemployment rate, and the uncertainty over U.S. tax policy at the end of this year."

Since 1992, NHRS has achieved an average annual return of 7.8-percent; the three-year return is 11.8-percent.

The pension fund assets stood at approximately $5.7-billion as of June 30.

The New Hampshire Retirement System provides retirement, disability, and death benefits to its eligible members and their beneficiaries. The State of New Hampshire and more than 470 local government employers participate in NHRS for their employees, teachers, firefighters, and police officers. NHRS has approximately 50,000 active members and 27,000 pension recipients.

NHRS administers a defined benefit plan qualified as a tax-exempt entity under section 401(a) and 501(a) of the Internal Revenue Code.