Rhode Island's pension
system outperforms most peers for second year in a row
Rhode Island's pension system continues to improve its relative investment performance when compared to similarly sized public pension funds, outperforming 78% of its peers in the fiscal year ending on June 30, 2019.
Leading market intelligence
firm, InvMetrics, found that Rhode Island performed in the top quartile
among public pension funds over $1 billion, according to a report from New
England Pension Consulting, which serves as a consultant to pension plans
throughout the country, including Rhode Island.
Rhode Island's performance
continues to steadily improve compared to its peers, marking the second
consecutive fiscal year in which the plan outperformed the median in its peer
group. This recent success stands in contrast to historical performance, in
which Rhode Island often lagged its peers.
The system's relative performance ranked in the sixty-sixth percentile among peers for a ten-year period, while improving to fifty-seventh in a five-year period, and twenty-second over a one-year period.
The system's relative performance ranked in the sixty-sixth percentile among peers for a ten-year period, while improving to fifty-seventh in a five-year period, and twenty-second over a one-year period.
Under Treasurer Magaziner's
leadership, the state adopted the 'Back to Basics' investment strategy, which is
designed to provide long-term growth over time and stability when markets are
challenging. Since implementation of Back to Basics began in September 2016,
the fund has earned $1.8 billion from investments as of July 31, 2019.
Detailed information about the
fund, including the 'Back to Basics' investment strategy, performance, and
detailed information about its managers are published online as part of
Treasurer Magaziner's "Transparent Treasury" initiative at: investments.treasury.ri.gov
Related link: NEPC Peer
Comparison FY2019