PROVIDENCE – Rhode Island’s pension fund grew by $2.2 billion in fiscal 2021, ending the year with a record $10.3 billion in assets, General Treasurer Seth Magaziner announced on Wednesday.
The 27% year-over-year increase continues a trend of strong performance during the COVID-19 pandemic despite what sometimes have been volatile financial markets.
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Magaziner credited the gains to his “Back to Basics” investment strategy, which includes a crisis protection class to shield against volatility.
“As general treasurer, my top priority is delivering economic growth and financial security for all Rhode Islanders,” Magazine said in a statement. “ ‘Back-to-Basics’ works. This year the pension system has reached an all-time high, we have achieved our highest annual return in 25 years, and retirees in the system are also receiving a much-needed cost of living adjustment.”
During fiscal 2021, the pension fund returned 25.58%, outperforming its benchmark 22.18% return, which is based upon the ratio of stock to fixed-income investments. Over the last five years, the annual investment return was 10.86%, also exceeding the 10.12% benchmark, the release stated.
Big deal. This is a no brainer. It’s been a raging bull market for 5 years. Seth’s so-called “investment strategy” has nothing to do the pension plan’s performance.