Maryland State Retirement & Pension System Earns 6.46% on Investments in FY 2019

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Baltimore, MD (July 31, 2019) — The Board of Trustees of the Maryland State Retirement and Pension System today announced that its portfolio returned 6.46% percent, net of fees, on investments for the fiscal year that ended June 30, 2019—falling short of the System’s 7.45% assumed actuarial return rate. The fund’s performance raised the system’s assets to $54.2 billion, an increase of $2.4 billion over last year.

“The System’s returns reflect strong performance of private equity assets and nominal fixed income assets along with positive but more modest returns in the remainder of the asset classes,” said Andrew C. Palmer, Chief Investment Officer. “Private equity provided 13.7%, net of all fees and expenses and continues to be the best performing asset class for the System. Rate sensitive investments provided 9.3% return, while all of the other asset classes contributed positive returns.”

“The Board is focused on its obligation to pay member pension benefits in full and on time,” said State Treasurer Nancy K. Kopp, Chair of the Maryland State Retirement and Pension System Board of Trustees. “Investment returns this past year are within the Board’s expectations of variability around the long term average for our diversified asset allocation. Our earnings have averaged 8.6% over the last ten years, well above the plan’s expected rate of return and consistent with the Board’s investment policy.”