Rhode Island's pension fund continued to deliver strong performance in January, earning $254.8 million, and outperforming the plan's investment benchmark, as well as a standard 60% global equity / 40% fixed income benchmark.
"Rhode Island's pension fund continues to grow stronger and healthier," said Rhode Island Treasurer Seth Magaziner. "Our 'Back to Basics' investment strategy is designed to deliver strong performance over the long term, ensuring retirement security for those who are in the pension system and benefitting all Rhode Island taxpayers."
For the month of January 2018, the fund earned 3.03 percent net of fees, outperforming the 2.95 percent performance of the plan's investment benchmark, as well as the the 2.92 percent return of a standard 60% global equity / 40% fixed income benchmark.
In the first seven months of fiscal year 2018, the portfolio earned $831.1 million through January 31.
The 10.49 percent net of fee return for the period from July 1 - January 31 outperformed the plan's investment benchmark return of 10.22 percent, as well as the 10.27 percent return for a standard 60% global equity/40% fixed income benchmark return.
The pension fund portfolio also outperformed investment benchmarks for the three and five-year periods.
For the three-year period ending January 31, the fund earned 8.20 percent net of fees, while the plan benchmark earned 7.87 percent and the standard 60/40 benchmark earned 7.64 percent. Over a 5-year time frame, the pension fund earned 7.98 percent net of fees, outperforming the plan benchmark return of 7.95 percent and standard 60/40 benchmark earned 7.64 percent.
Treasurer Magaziner announced the "Back to Basics" investment strategy in September 2016. In that time, the fund has exited seven hedge funds, reallocating over $500 million into more traditional investments for growth and stability.
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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Contact: Randy Rice, Deputy Director of Communications (401) 487-3258 / randall.rice@treasury.ri.gov