Connecticut’s pension funds set an all-time record in fiscal year 2017, with a net investment return of 14.2 percent, according to state Treasurer Denise L. Nappier.
The Connecticut Retirement Plans and Trust Funds had assets of $32.4 billion at the end of June 30, according to preliminary, unaudited investment results. After paying fees and expenses, the overall portfolio increased by more than $3 billion in value during the year, Nappier said.
The two largest pension funds – the Teachers’ Retirement Fund and the State Employees’ Retirement Fund – returned 14.4 percent and 14.34 percent respectively, exceeding their benchmarks by 116 and 117 basis points, according to the treasurer. Five-year returns for each outperformed their benchmarks with returns of 8.8 percent. Respective seven-year returns of 8.96 percent and 9.03 percent slightly trailed their benchmarks.
Three equity market funds representing 51 percent of the portfolio’s holdings posted double-digit returns: The Developed Markets International Stock Fund with 24.81 percent; the Emerging Markets International Stock Fund with 23 percent; and the Mutual Equity Fund with 19.26 percent.
“Through all the volatility, our asset allocation strategy and asset manager performance proved resilient – fully capturing the market upswing and adding significant additional value,” Nappier said. “Outperforming the market, as reflected in returns above our benchmarks, is always gratifying, particularly for the taxpayers we serve during these tight fiscal times.”