PROVIDENCE – Rhode Island’s pension fund earned $323 million from investments in January, a 4.1 percent return that finished ahead of the fund benchmark that returned 3.6 percent, General Treasurer Seth Magaziner’s office announced.
The positive performance was driven by the state’s investments in the global stock market, mostly low-fee index funds designed to provide long-term growth, according to Magaziner’s office.
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“Public servants who spend their careers deserve to know that their pensions will be there for them in retirement and taxpayers deserve to have their public pension systems managed responsibly,” Magaziner said in a statement. “Our investment strategy is designed to provide long-term growth over time and stability when markets are challenging.”
Over the three-year period ended Jan. 31, the fund outperformed benchmarks earning an annualized return of 8.7 percent versus the plan benchmark return of 8.5 percent and a traditional 60 percent stock/40 percent bonds portfolio, which would have earned 7.8 percent, Magaziner’s office said.
Magaziner’s office also announced it reached an agreement with agricultural processing giant Archer Daniels Midland Co. for the company to consider the feasibility of adopting companywide goals for reducing its greenhouse gas emissions, including increasing its use of renewable energy.
Magaziner’s office said the agreement was the result of its shareholder proxy proposal in November, which has since been withdrawn because of the agreement.
“Pension funds are long-term investors,” Magaziner said in a statement. “Companies, especially those as large as Archer Daniels Midland, must have a plan to adapt their business model to reduce dependence on fossil fuels. A transition to renewable energy can help stabilize and reduce energy costs – freeing up corporate resources that can be invested for sustainable growth.”
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
