Conservative assumptions continue to be strategic for public pension plans “while keeping expenses down during 2017 despite producing strong returns, said results of a survey released Wednesday by the National Conference on Public Employee Retirement Systems,” writes James Comtois for Pensions & Investments.
The NCPERS Public Retirement Study finds that 85 per cent of respondents “said they have either reduced their investment return assumptions” or plan to do so” with the average investment assumption unchanged at 7.5 per cent “and the average inflation assumption ticked down” to 2.9 per cent from three per cent.
“Public funds continue to remain cost effective. While all responding plans report the total cost of administering their funds and paying investment managers was 55 basis points in 2017, up 1 basis point over the total cost of 54 in 2016, the 86 plans that participated in both 2016 and 2017 saw their costs drop to 52 basis points,” writes Comtois.
More: Aggregated annual investment returns jumped to 7.8 per cent in 2017.

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