Seventeen retirement funds pooled in the Commingled Trust Fund (CTF) make up roughly 82 percent of the State Investment Board’s portfolio. Pooling the funds helps control risk and ensure stronger performance over time. Last year the CTF was valued at more than $88 billion.

The chart at right compares the CTF to Wilshire’s Trust Universal Comparison Service (TUCS), the most widely accepted benchmark for the performance of institutional assets.

Pension funding assumptions require 8% annual yields. The retirement fund has an annualized return of 8.8% since inception (June 1992) — despite the recent economic downturn.