Retirement system responds to criticism

The Teachers Retirement system of Louisiana has responded to a Greater Baton Rouge Business Report article claiming that TRSL appears on “a list of the most risky public retirement funds.”

In a press release, TRSL Public Information Director Lisa Honore says the study mentioned in the newspaper “is not based on a widely accepted methodology.” Another study which does use industry standards says that TRSL’s portfolio is actually “less risky than the median public pension fund with assets greater than $1 billion.”

“TRSL has a highly diversified investment portfolio structured to perform well over the long term and achieve a target return of 8.25 percent,” says the press release. “In fact, the System has exceeded its target rate with a 25-year return of 8.68 percent for the period ended June 30, 2009. Furthermore, TRSL’s seven-year investment return ranks in the top third (32 percentile) of the Wilshire Public Plan Greater than $1 billion Peer Group.”