12-Month Investment Gain Tops $1 Billion as Rhode Island Pension Fund Earns $128M in February

PROVIDENCE, R.I. – Rhode Island’s pension fund earned $128 million in investment
gains in February 2017 bringing its 12-month investment earnings over the $1 billion
mark, General Treasurer Seth Magaziner announced at today’s meeting of the State
Investment Commission.
«Delivering long-term growth from our investments is critical to ensuring the health
and stability of our state pension system,» said Treasurer Magaziner. «Under our
‘Back to Basics’ investment strategy, a most of our fund is in traditional investments
for growth, meaning that Rhode Islanders have been able to benefit from our continued
economic recovery.»
Returning 1.7% in the month of February, the fund’s market value grew to $7.9 billion.
Over the past 12 months, the fund has earned a 14.4% return, outperforming the plan’s
own 13.9% benchmark, as well as a traditional 60% stock/40% bond portfolio which
would have returned 13.5%.
In 2016, the State Investment Commission approved Treasurer Magaziner’s ‘Back to
Basics’ investment strategy, which is designed to strengthen performance and reduce
risk for the plan. Included in ‘Back to Basics’ is the move to exit most of the
state’s investments in hedge funds in favor of more traditional strategies for growth
and stability.