Connecticut’s pension funds topped an all-time high in fiscal 2017, recording 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 grew by over $3 billion in value during the year, she said.
The two largest pension funds, the Teachers’ Retirement Fund (TERF) and the State Employees’ Retirement Fund (SERF), returned 14.4 percent and 14.34 percent respectively, exceeding their benchmarks by 116 and 117 basis points, Nappier said.
Three equity market funds that represent 51 percent of the portfolio’s holdings posted double-digit returns: The Developed Markets International Stock Fund (24.81 percent); the Emerging Markets International Stock Fund (23 percent); and the Mutual Equity Fund (19.26 percent), she said. They also surpassed their benchmarks, she added.
Likewise, five-year returns for TERF and SERF outperformed their benchmarks with returns of 8.8 percent each.
“Every additional investment dollar earned is one less tax dollar needed to meet the state’s pension benefit obligations and, therefore, available to support funding for critical state programs and services,” Nappier said.
