Rhode Island's pension fund earned $117 million in investment gains in January 2017, General Treasurer Seth Magaziner announced at today's meeting of the State Investment Commission.
"As we implement our 'Back to Basics' investment strategy, the pension fund is delivering for Rhode Islanders," said Treasurer Magaziner. "Through investments designed to deliver long-term growth and proven strategies for stability, we are making sure our pension system is stronger and more secure."
Returning 1.6% in the month of January, the fund's market value grew to $7.8 billion, the highest in more than a year. The fund has earned more than $875 million from investments over the past 12 months, a return of 12.4%, which beats the plan's own 11.6% benchmark and a traditional 60% stock/40% bond portfolio which would have returned 11.2%.
In 2016, the State Investment Commission approved Treasurer Magaziner's 'Back to Basics' investment strategy, which is designed to strengthen performance and reduce risk. Included in 'Back to Basics' is the move to exit most of the state's investments in hedge funds in favor of more traditional strategies for growth and stability. The state expects to have exited most hedge funds by this summer.
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Detailed information about the fund's investment strategy, performance and managers can be found online at: http://investments.treasury.ri.gov/
All performance reported is net of fees.