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Public Pension Survey 2003:
Where Does Your Fund Rank?
Russell V. Kuhns, Chief Executive Officer
R. V. Kuhns & Associates
 A comprehensive survey of 82 of the largest public funds shows that the successful managed funds use an investment strategy that focuses on diversity in their investments and use alternative asset classes. The report was compiled by R.V. Kuhns and Associates of Portland, which consults with over 150 clients with assets exceeding $300 billion.
The survey, compiled twice yearly, confirms that asset allocation is a particularly important strategic planning tool in determining appropriate long-term allocation targets. Asset allocation models developed a number of years ago, which call for minimal diversity, may no longer be appropriate for achieving the rate of returns expected by most funds.
The survey shows separate results for funds that are NCPERS members. Those funds reported average returns that were similar to the public fund median figures, and also showed similar asset allocation strategies.
For example, the NCPERS member funds which participated in the survey had the following total fund returns:
- 23.4% for the one-year period ending December 31, 2003, compared with the S&P return for the same period of 18.5%;
- 2.6% for the three-year period ending December 31, 2003, compared with the S&P return for the same period of 1%;
- 4.5% for the five-year period ending December 31, 2003, compared with the S&P return for the same period of 2.7%; and
- 9.0% for the ten-year period ending December 31, 2003, compared with the S&P return for the same period of 9.7%.
The NCPERS funds participating had actuarial assumptions for the past year of an eight percent return on investments, with a five percent salary increase.
A complete copy of the Public Fund Universe Analysis Report can be obtained from R. V. Kuhns & Associates by contacting Russ Kuhns at russ@rvkuhns.com.
Russell Kuhns is Chairman and Chief Executive Officer of R. V. Kuhns located in Portland, OR. For over 17 years, R. V. Kuhns & Associates has produced its comprehensive report of data from the largest public funds in the United States. The report provides peer to peer analysis based on factors such as fund size, type of fund and geographic location. Any fund wishing to participate should contact R. V. Kuhns & Associates.
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