R.I. Pension Fund Continues to Rally, Earns $45.8M in September System Achieves Seventh Straight Month of Positive Performance

PROVIDENCE, R.I. – The state’s pension system continued its months-long rally earning
more than $45 million in positive returns in the month of September, announced Rhode
Island General Treasurer Seth Magaziner today at a meeting of the State Investment
Commission.
«Rhode Island’s investments continue to deliver positive performance for retirees
and taxpayers,» said General Treasurer Seth Magaziner. «While this is encouraging,
we are also taking steps to do even better. Our team is in the process of implementing
our ‘Back to Basics’ strategy, which was designed to deliver stronger returns, reduce
volatility, and strengthen retirement security for Rhode Island public employees.»
September’s performance marks the seventh consecutive month of positive performance
for the fund, returning $45.8 million net investment performance and beating both
the portfolio’s benchmark and a traditional 60% stock, 40% bond portfolio.
Year-to-date,
the fund has returned 6.2% compared to its 5.7% benchmark. This growth comes despite
first quarter fallout from the U.K.’s market-reeling Brexit vote.
International Emerging Markets were the portfolio’s strongest investment category
for the month, returning 1.31% in September. Year to date, emerging markets equities
have returned 15.7%.
A number of hedge funds continue to fall short of their benchmarks and lag the overall
portfolio in 2016 to-date. Under Treasurer Magaznier’s new ‘Back to Basics’ investment
plan, the state is in the process of exiting a majority of its hedge fund investments.
Detailed information about the fund’s investment strategy, performance and managers
are published online as part of Treasurer Magaziner’s ‘Transparent Treasury’ initiative
at: investments.treasury.ri.gov