PROVIDENCE – The state pension fund earned $254.8 million in January, representing a 3 percent return net of fees.
The $8.6 billion fund outperformed both its benchmark plan and a standard 60-40 equity-to-fixed income benchmark, which returned 2.95 percent and 2.92 percent, respectively.
“Rhode Island’s pension fund continues to grow stronger and healthier,” said Seth Magaziner, Rhode Island general treasurer, in prepared remarks.
Fiscal year to date, the fund has earned $831.1 million, representing a return of 10.5 percent net of fees. The fund has largely benefited from robust market growth over the last seven months.
Magaziner also points to his renewed investment strategy as contributing to the growth, which included moving about $500 million out of hedge funds and into more “traditional investments for growth and stability.” The strategy represented a reverse from his predecessor, Gov. Gina M. Raimondo, who increased the state’s position in hedge funds when she served as general treasurer.
Magaziner’s strategy was likely tested by market volatility in February, which will become clear when the state releases those numbers later this month.
Eli Sherman is a PBN staff writer. Email him at Sherman@PBN.com, or follow him on Twitter @Eli_Sherman.
