Southern Illinois News

The Illinois Teachers’ Retirement System’s (TRS) assets had an approximately $3 billion rebound – reaching a total of $51.6 billion – even as the nation struggled under the weight of the economic crisis created by COVID-19.

The rebound between March and June was the silver lining, though, according to a TRS news release. Despite the rate of return for TRS investments on Dec. 31, 2019 coming in at +13.41%, by the end of fiscal year 2020 on June 30, the effects on global markets of the COVID-19 had brought that down near break-even, at 0.5%.

As a result, though TRS assets had that $3 billion rebound from March to June, the fund started the calendar year with $54.2 billion in assets. At the low point in March, TRS assets bottomed-out at $48.5 billion.

“Everyone took a hit during the pandemic,” Stan Rupnik, TRS interim executive director, said. “But the investment strategies we have in place limited losses and have allowed us to prudently rebuild the portfolio’s value.”

In fact, analysis by the Northern Trust Corp. showed that the median return for public pension plans from January to March was -12.6%, compared to the -9.95% return TRS experienced. TRS's long-term investments held up well during the crisis, continuing to exceed the 7% assumed return rate with a 40-year 9% return at the end of fiscal year 2020.

“The long-term investment returns are the most important numbers for our members,” Rupnik said. “These timeframes reflect the long-term relationship that TRS has with its members, both as active educators and as retirees. The long-term returns also indicate a successful investment program that values steady growth and strong risk management over several generations.”