Investment Objectives
Assets of the System shall be invested to ensure
that principal is preserved and enhanced over the long
term, both in real and nominal terms.
- Total return, consistent with prudent investment
management, is the primary goal of LASERS. Total
return, as used herein, includes income less
expenses plus realized and unrealized gains and
losses in LASERS’ assets
- A real rate of return of at least 4% per year
should be earned. This is the return over the rate
of inflation (as measured by the Consumer Price
Index). Additionally, a nominal return goal for
LASERS is 9.25%, (net of investment management fees)
in order to exceed the 8.25% actuarial return and
provide a buffer to cover expenses.
- Total fund return for LASERS shall consistently
rank in the top half of an appropriate public fund
universe, and shall meet or exceed the return of
LASERS’ Policy Index.
- Total fund risk exposure and risk adjusted
returns will be regularly evaluated and compared
with other public funds. Total risk exposure is
expected to be midrange (25th to 75th percentile)
relative to an appropriate universe of other public
total funds.
Review of Investment Process
On a timely basis, at least quarterly, the Board
will review actual investment results achieved by each
manager to determine whether:
- The investment managers performed satisfactorily
when compared with the objectives set and in
relation to other similarly managed funds.
- The periodic re-evaluation also will involve an
evaluation of the continued appropriateness of: (a)
the manager structure; (b) the allocation of assets
among the managers; and (c) the investment
objectives for LASERS’ assets.
- LASERS’ investment managers may be placed on a
watch list in response to the following Investment
Committee concerns:
- Concerns about the manager’s recent or long
term investment results
- Failure of the investment advisor to comply
with any of LASERS’ investment guidelines
- Significant changes in the investment
advisor’s firm
- Anticipated changes in LASERS’ structure
- Any other events which the Investment
Committee deems appropriate
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