Rhode Island's pension fund continues to deliver positive investment performance under Treasurer Magaziner's Back to Basics strategy earning $64.2 million in investment gains in the month of August which brings the fund's value to $8.17 billion.
"Our Back to Basics investment strategy continues to deliver positive performance for retirees and taxpayers," said Treasurer Magaziner. "I am committed to strengthening the state's finances for all Rhode Islanders and that includes bringing added stability to the state's pension fund."
The fund earned 0.79% net of fees in the month of August 2017, outperforming its own 0.77% benchmark and beating a traditional 60% stock/40% bonds portfolio which would have only delivered a 0.58% return. Similarly, the fund's 1-year return (for the 12 month period ending on August 31, 2017) is 11.27%, beating the plan's benchmark which stands at 10.95% and - beating by more than 1% - a 60%/40% portfolio, which would have returned 10.21%.
Treasurer Magaziner announced the Back to Basics investment strategy in September 2016, which moves the state out of most hedge funds and into more traditional investments that are designed to grow when markets are up and provide stability when markets are down.
Detailed information about the fund's investment strategy, performance and managers are published online as part of Treasurer Magaziner's 'Transparent Treasury' initiative at: investments.treasury.ri.gov
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