State Employees’ Retirement Fund Market Value Altimeter
August 2007
| Valuation Date |
Market Value (in billions) |
| 6/30/07 | $11.697 |
| 5/31/07 | $11.699 |
| 3/31/07 | $11.392 |
| 2/28/07 | $11.304 |
| 1/31/07 | $11.369 |
| 12/31/06 | $11.311 |
| 9/30/06 | $10.836 |
| 6/30/06 | $10.494 |
| 3/31/06 | $10.590 |
| 12/31/05 | $10.273 |
| 12/31/04 | $9.785 |
| 12/31/03 | $9.369 |
| 12/31/02 | $8.573 |
| 12/31/01 | $9.914 |
| 12/31/00 | $10.890 |
| 12/31/99 | $11.055 |
| 12/31/98 | $10.020 |
| 12/31/97 | $8.922 |
| 12/31/96 | $7.654 |
| 12/31/94 | $5.385 |
| 12/31/90 | 3.9935 |
The State Employee Retirement Investment portfolio showed anther climb and record of 11.969 billion as of May 31, 2007. This was an increase of 274 million from month ended April 30, 2007. The time period of December 31, 2006 showed alternative investments, real estate and fixed income in small positives. However, the current ten-year return stands at 8.8% and never in the past two decades went below the 8% assumption. There has shown recently in the GDP of a slow down in economic growth in real estate that has developed into a buyers’ market. Regardless, in its diversification, those individuals regulating our fund have substantially increased the bottom line and created a good cushion for risk. Although our pensions are guaranteed by constitution the better the results show in the investments made the easier it is for he State to pay our health benefits.
Observations, Facts and Assumptions
There is a rumble around town about the State taxing our pensions. This “noise” pops up periodically and has been faced in the past. The Attorney General has state that it would be unconstitutional for the State to tax pension benefits unless alternative benefits are provided in their place that are equal or greater than the amount that pension benefits would be lessened by reason of the State tax.
We are told that 50 percent of those in retirement have some kind of stock invested. Over the long term stocks have proven to out perform bonds and cash type investments such as money market funds. Stocks show that every ten-year period since 1926 they have outpaced bonds and cash eighty percent of the time. Time is of the essence for many of us as we are running out of it. THere are short term portfolios that could be appropriate for those who are within 5 years of a goal or are already retired. Remember, investing in retirement can be particularly tricky. Some of us can’t afford to lose even a little. It turns out people with high IQs are no wealthier than folks with average intelligence or less as money doesn’t always seem to stick. The great man, Albert Einstein, lost his Nobel prize money on bonds that soured.
After 24 years working for the Michigan Department of Treasury, Jackie Johnson, Director, Bureau of Investments, departed the position in May to assume a similar one in August, Texas. You will be missed Jackie. The temporary replacement is Jon M. Braeutigan, the present administrator of the Mortgage and Real Estate Investment portfolio for the State of Michigan Retirement Systems. Mr. Braeutigan is responsible for formulating and implementing, in conjunction with the Director of the Bureau of Investments portfolio investment strategies and policies necessary to achieve performance objectives, striving to achieve an annualized rate of return on the real estate portfolio that meets or exceeds the NCRIF property index (minus an adjustment for standard industry advisory fees).
Prior to his appointment as Administrator, Mr. Braeutigan graduated with honors from Michigan State University with a Bachelor of Arts Degree in 1985, majoring in Purchasing, Transportation and Operations and in 1987 graduated from the same institution with an M.B.A. in Finance.
Did You Know
- It takes a person 20 seconds of washing with soap and warm running water to remove dirt and kill germs.
- One penny costs 1.4 cents to manufacture. The cost went up by 44.3% in 2005 because of increasing costs of metal, manufacturing and transportation.
- The Young Man’s Christian Association was founded in London, England, in 1844.
- The Detroit Zoo was the first zoo in American to feature cageless, open exhibits that allowed animals more freedom to roam.
- In 1929 the Michigan State Police established the first police radio system in the world.
- All 50 states refer to God in their respective preambles.
Ponder This
- When the fog lifts — UCLA.
- Show me a piano falling down a mine shaft and I’ll show you a flat-minor.
- When you’ve seen one shopping center, you’ve seen a mall.
Editor’s note: Al Trierweiter is a former President of the Lansing SERA Chapter, former Chairman of the Michigan SERA Coordinating Council, former Legislative Representative for both the Lansing Chapter and the SERA Council. AI may be reached at 6440 Old River Trail, Lansing 48917; phone 321-0041.
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