LASERS Investment Performance 18.8%

LASERS ended the June 30, 2014 fiscal year with an investment return of 18.8 percent. This stellar performance brings the total asset value of the System to $11 billion, the highest in the history of LASERS.

This fiscal year return places the System in the top ten among 90 other public retirement funds greater than $1 billion, according to Wilshire's Trust Universe Comparison Service (TUCS). TUCS is the most widely accepted benchmark for the performance of institutional assets and represents the largest database of any peer-comparison service in the industry.

"For the second year in a row, we have had double digit market returns," said LASERS Chief Investment Officer Bobby Beale, "and we attribute this to a well-diversified asset allocation across asset classes and geographies. Specifically this year, strong performance in the domestic and international equity markets had a definite impact on returns."

"Wilshire Associates, Inc. reported that, for the one-year period, public pensions with assets greater than $1 billion experienced a median return of 17.4 percent, so it is particularly exciting to share news of our 18.8 percent return with our members and the state as a whole," said LASERS Executive Director Cindy Rougeou. "We set the bar high because LASERS is working for Louisiana."

LASERS provides a defined benefit pension plan that covers approximately 150,000 members. LASERS pays over $1 billion in annual benefits to retirees and their beneficiaries, providing a strong and reliable economic stimulus for Louisiana.

Rougeou Shares Positive News at Open Forum

LASERS Executive Director Cindy Rougeou welcomed state agency human resource (HR) staff to the LASERS Annual Open Forum on Wednesday, August 28. The meeting is an opportunity for LASERS to share the latest news and changes affecting retirement for LASERS agencies and members and hear concerns from the HR community.

In her opening remarks, Rougeou addressed the sustainability of LASERS. She commented that questions have been raised about the soundness of pension systems given the recent news about the bankruptcy filing of the city of Detroit. "We are not Detroit. We are not going bankrupt," said Rougeou.

In addition to a 10-year market return of 8.2 percent and a 2013 fiscal year market return of 12.6 percent, Rougeou pointed to a 10-year cash flow analysis that LASERS recently completed. While LASERS has paid out over $7 billion in benefits in the past 10 years, the System has collected $11 billion from contributions and investment earnings. Because 90 percent of our retirees stay in Louisiana, she noted that the benefits they have earned and expend result in a powerful and positive economic generator on our state's economy.

Rougeou also gave an overview of the payment schedule of the Unfunded Accrued Liability (UAL), which is the debt owed by the State to the System. On the current payment schedule, in nine years, the UAL is set to drop by $1.4 billion and by $4.4 billion in 20 years.

Rougeou also touted recent cost-saving measures, stating, "It is too often forgotten that since 2005, the Legislature has made significant changes or reforms to the benefit structure. With the passage of Act 75 of 2005 and Act 992 of 2010, the cost of LASERS rank-and-file plans will be reduced by nearly $800 million," Rougeou said.

Rougeou also commented that LASERS member benefits are funded during the active working life of the member, unlike Social Security which operates as a "pay-as-you-go" system.  She reassured attendees that LASERS benefits are protected by the Constitution, as is the financial soundness of the System.

LASERS Posts Strong Investment Return

The Louisiana State Employees’ Retirement System (LASERS) has posted an investment return of 12.6 percent for the fiscal year ending June 30, 2013, which brings the total asset value for LASERS to over $9.7 billion. 

“We are pleased to announce double digit returns for the 2012-2013 fiscal year,” said LASERS Chief Investment Officer Bobby Beale. “In addition, LASERS continues to focus on long range investment returns, which rank us in the top quartile among our peers nationwide.” LASERS highly credentialed staff internally manages approximately one-third of its portfolio, saving the System millions of dollars per year in professional management fees.

LASERS 10 year investment return is 8.2 percent. The most recent peer comparison as of June 30, 2013, places LASERS in the top 19 percent ranking over a 10 year period for public funds greater than $1 billion, according to Wilshire’s Trust Universe Comparison Service (TUCS). TUCS is the most widely accepted benchmark for the performance of institutional assets and represents the largest database of any peer-comparison service in the industry.

“Our investment performance is consistently among the best in the nation,” said LASERS Executive Director Cindy Rougeou. “We are pleased to report to our members that LASERS is continuing to move forward in a positive direction.”