Missouri Public School and Education Employee Retirement Systems, Jefferson City, returned 10.25% for the quarter ended Sept. 30 and gained $6.2 billion since market lows in early March, confirmed Craig Husting, chief investment officer.
The $26.5 billion system’s rebound was partially the result of the system’s allocations to Treasuries and Treasury inflation-protected securities at the beginning of the financial crisis, Mr. Husting said in an interview.
“We moved (about $2 billion) out of Treasuries and TIPS in October, November, December of last year and back into corporate credit to participate in the rebound,” a move that continued into spring 2009, he said.
The system currently has asset targets of 27% U.S. equities, 16% U.S. Treasuries, 15% non-U.S. equities, 12% credit bonds, 10.5% private equity, 7.5% private real estate, 6% hedge funds, 4% TIPS and 2% private credit. The actual allocation as of Sept. 30 was 33% U.S. equities, 20% non-U.S. equity, 13% credit bonds, 12% U.S. Treasuries, 6% each for hedge funds and TIPS, 5% private equity, 4% private real estate and 1% private credit.