Investments

risk rewardPurpose and Objectives
The primary objective of the MoDOT & Patrol Employees’ Retirement System (“System,” “Plan,” and “MPERS”) is to provide retirement benefits to active and retired employees and their beneficiaries. As part of this charge, the Plan will invest its assets in a diversified portfolio following prudent standards for preservation of capital, with the goal of achieving the highest possible rate of return consistent with the System’s tolerance for risk as determined by the Board of Trustees in its role as fiduciary.

Guiding principles:
1. Preserve the long-term corpus of the fund.
2. Maximize total return within prudent risk parameters.
3. Act in the exclusive interest of the members of the system.

Our investment beliefs:
1. Diversification is critical because the future is unknown.
2. Prudent asset management must first focus on understanding and balancing risk.
3. Flexibility in investment policy implementation is critical because various asset classes will be in or out of favor at different  points in the economic cycle.

State statutes require the system to make investments using the same care, skill and diligence that a prudent person acting in a similar capacity would use. In Fulfilling this obligation, the Board of Trustees has established a formal investment policy to clearly define the roles and responsibilities of the Board, staff and consultants, and to ensure that the system assets are invested in a diversified portfolio following prudent investment standards. The Board of Trustees determines the broad asset allocation policies and return objectives of the plan, and retain investment staff, consultants, a master custodian and other advisors to implement and execute these policies.
The primary objective of the MoDOT & Patrol Employees’ Retirement System (MPERS) is to provide active and retired employees with adequate retirement benefits. The investment portfolio is constructed to generate a total return that, when added to employer contributions, is sufficient to meet benefit obligations. Following the prudent standards for preservation of capital, the goal is to achieve the highest possible rate of return consistent with the plan’s tolerance for risk as determined by the Board of Trustees in its role as fiduciary.