SURS invests in equity extension strategies, certifies FY 26 state contribution, increases effective rate of interest

SURS invests in equity extension strategies, certifies FY 26 state contribution, increases effective rate of interest

December 11, 2024| News, Press Release

The trustees of the State Universities Retirement System (SURS) on Dec. 7 approved retaining J.P. Morgan Asset Management (JPM) and Man Numeric to manage 130/30 equity extension mandates for US and non-US portfolios, respectively, pending successful contract negotiations. A 130/30 strategy removes the long-only constraint and allows a manager to implement short positions to generate returns from stocks they dislike, in addition to taking long positions in stocks they view positively. This is a new strategy within SURS Traditional Growth Asset Class.

In other business:

• The board approved SURS fiscal year 2026 certified state contribution of $2,319,446,000.

• Trustees accepted the Actuarial Valuation Report and GASB 67/68 Report dated June 30, 2024. The reports are posted on surs.org at https://surs.org/business/investments/actuarial-valuation-reports/.

• Trustees also accepted the State Actuary's Preliminary Report regarding the review of assumptions and methods used in the June 30, 2024 Actuarial Valuation.

• The board increased the fiscal year 2026 effective rate of interest to 7.25% from 7.0%. The SURS effective rate of interest is used for the calculation of service credit purchases, refunds of survivor and excess contributions, Traditional and Portable defined benefit plan refunds, and lump-sum Portable plan retirements.