Illinois State Universities Retirement System, Champaign, returned 17% for its fiscal year, ended June 30, said James M. Hacking, executive director. The return was just below the 17.4% return of system's composite market benchmark. For the 10 years ended June 30, the fund averaged a compound annual 10%, outperforming the benchmark return of 9.4%. All the system's returns are after fees and transaction costs.
As of June 30, the system's assets totaled $12.64 billion, and liabilities were an estimated $19.23 billion, for a preliminary funding ratio of 65.8%, up from 54% a year earlier. The final liabilities total won't be available until after an actuarial valuation report is finished in October, he said.
Mr. Hacking attributed the improved funding ratio to the investment return and the $1.43 billion in proceeds the system received in July 2003 from the state's pension obligation bond issue.