As we know, financial markets can undergo periods of volatility due to national or global events. When that happens, it’s important to remember that your TRS pension trust fund plays the long game.
- Your fund is managed by long-term professional investors focused on meeting obligations over the many decades to come
- The trust remains highly liquid and able to rebalance as needed and meet the obligations of members
- TRS’ portfolio is highly diversified, which reduces risk and lessens the impact of market volatility
That third point is precisely what Chief Investment Officer Jase Auby shared with TRS’ board of trustees at April’s meeting. Mr. Auby, a veteran investor with TRS since 2009, said when the big financial markets dipped a dramatic 9% recently, TRS’ fund moved about 2%, and the trust is in a good position to quickly recover and keep growing. That was in large part because a big chunk of the fund was not affected by the stock market’s churn, but is in more stable investments, designed to offset such volatility.
“Our asset allocation is built to weather storms like this, in particular 21% [of the trust] is meant to maintain its value, have a stable value during trying times.” - TRS CIO Jase Auby
It’s worth remembering that while short-term market movements can draw attention, they’re not a reliable measure of your fund’s overall health. By maintaining a steady hand during periods of volatility, public pension plans like TRS are positioned to continue providing secure retirement benefits for generations to come.