Investments
Confidence In Your Benefit Even in Uncertain Times T he fiscal year reporting period for PSRS/PEERS ends each June 30. Through April 30, 2025, the Systems had completed the majority of fiscal year 2025, delivering solid investment returns – even as the early stages of a broad market pullback
plan is protected under Missouri law, which ensures that benefits provided by PSRS/PEERS cannot be diminished or impaired. That promise remains strong, regardless of current headlines. A Long-Term Approach PSRS/PEERS invests with the long view in mind. As a large institutional investor, we can invest over a 30-year time horizon because we have significant assets to cover current obligations. Even if short-term declines continue, this market offers an attractive opportunity to buy stocks at fundamentally sound prices for long-term investors like PSRS/PEERS. Historically, patient investment in high-quality assets during market downturns has led to strong, sustainable returns. We remain committed to this philosophy – confident that it will provide consistent and meaningful investment returns for the Systems over time. Strength Through Diversification The Systems maintain an investment belief that the best long-term risk-adjusted returns can be achieved by investing in a broad and diversified opportunity set. Diversification is about spreading out risk. Simply put, we don’t want all of our eggs in one basket. As the pie chart on the next page indicates, the PSRS/PEERS portfolio is diversified across multiple asset classes in both public and private investments throughout the world. This strategy has proven especially valuable in 2025, as different sectors respond differently to tariff-related news and policy shifts. While U.S. stocks have recently underperformed, our investments in international stocks and hedged assets have helped offset losses, reinforcing the strength of a diversified portfolio. Diversification, paired with a long-term view, supports more stable returns over time – smoothing out the peaks and valleys of the market.
began to unfold. The estimated PSRS/PEERS investment return for the period of July 1, 2024, through April 30, 2025, stood at approximately 5.4%. While ongoing market volatility could result in a lower return by fiscal year-end, the Systems remain well- positioned for long-term success. For perspective, U.S. stocks – measured by the S&P 500 – entered correction territory earlier this year, falling as much as 19% in recent months. In times like these, it’s natural to have concerns about retirement security. Whether part of a defined benefit plan such as PSRS/PEERS or managing an individually directed 401(k), every saver is paying close attention. This update aims to address common concerns specific to PSRS/PEERS and highlight the strengths of the Systems during uncertain times. Why Has Volatility Increased? Investment markets rely on clarity to function smoothly. In times of uncertainty, volatility often follows. Recently, market fluctuations have been driven by uncertainty surrounding tariffs and the broader direction of government policy. These factors, combined with expectations of higher inflation and a potential slowdown in economic growth, have led to increased market swings – both up and down. We anticipate that these uncertainties may persist for some time. However, we also believe that periods like this can eventually lead to renewed stability – and opportunity. Your Benefit Remains Secure PSRS and PEERS are defined benefit plans – designed for predictability. Unlike defined contribution plans, your benefit is not affected by daily market changes. It does not fluctuate with economic cycles. Your retirement
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JUNE 2025
PSRS Benefit Check | RETIRED MEMBERS
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