CORRECTION: A previous version of this story incorrectly said the state retirement funds hold $25.2 billion in U.S. Treasury bonds.
The state treasurer’s office says the downgrade of the federal government’s credit rating won’t force Connecticut’s retirement funds to sell off their U.S. government holdings.
While many funds have differing guidelines on the percentage of bonds held below a AAA rating, the Connecticut Treasurer’s Office says no change in Connecticut’s holdings will be necessary, as to the best of its knowledge, all the fund managers are in compliance with their guidelines.
The state retirement funds held $25.2 billion in total asset at the close of the fiscal year. Federal bonds account for about 7.7 percent of the state’s investment portfolio, 3.1 percent in Treasury bonds and 4.6 percent in other agency bonds.
