PROVIDENCE – The state pension fund continued with strong performance in July, earning $125 million last month, R.I. General Treasurer Seth Magaziner reported.
The increase represented a 1.51 percent return for the month, finishing ahead of the fun’s benchmark return of 1.31 percent.
The increase was driven by investments in the global stock market with mostly low-fee index funds designed to provide long-term growth, according to Magaziner’s office.
“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 the three-year period ended July 31, the pension fund also outperformed its benchmarks, earning an annualized return of 6.68 percent compared with the plan benchmark return of 6.34 percent.
The fund also did better than a traditional 60 percent stock/40 percent bonds portfolio, which would have earned 6.06 percent during the same period, according to Magaziner’s office.
“My ‘Back to Basics’ investment strategy is performing well and the health of the system continues to improve,” Magaziner said.
Scott Blake is a PBN staff writer. Email him at Blake@PBN.com.
