Governor  Dannel P. Malloy
 

Pension Funds

Fiscal Year 2017 in Review

The Connecticut Retirement Plans and Trust Funds ("CRPTF") generated robust net investment returns of 14.38 percent for the Teachers' Retirement Fund and 14.32 percent for the State Employees' Retirement Fund, outperfoming benchmarks by 114 and 115 basis points respectively, for the period ended June 30, 2017.  The two funds comprise more than 90 percent of the CRPTF.

Propelled by solid performance results of 25 percent and 23 percent in the Developed and Emerging Markets International Stock Funds, respectively, as well as a Mutual Equity Fund return of 19 percent, the overall CRPTF finished the fiscal year with net assets of $32.4 billion, a $3.3 billion increase from the previous year and a new all-time fiscal year-end record.

Over the course of the fiscal year, the CRPTF made commitments of $925 million, $775 million for nine Private Investment Fund opportunities and $150 million to three Real Estate Fund investments. 

Additionally, the Office of the Treasurer issued a Request for Proposals for general investment consulting services, and Treasurer Nappier seleced two firms, including one dedicated to the Connecticut Higher Education Trust ("CHET").

The Connecticut Horizon Fund ("CHF"), an initiative of Treasurer Nappier to provide the Office access to a wider number of women and minority-owned, Connecticut-based and emerging investment management firms, has $1 billion in assets in its fund-of-funds public market program, a $155 million private equity allocation and a $170 million alternative investment allocation.  As of June 30, 2017, the public market program totaled 4 managers and 36 sub-managers. Emerging firms represented the largest allocation of total assets at 72 percent; minority-owned firms represented 42 percent; women-owned firms followed with 28 percent; and Connecticut-based firms were at 19 percent of total assets.* Additionally, there were 3 private equity managers and 20 sub-managers; including 8 minority-owned, 3 emerging, 1 women-owned and 8 Connecticut-based.  In the separately managed Fund-of-Hedge Fund mandate within the Alternative Investment Fund, there were 2 managers and 25 sub-managers; the breakdown includes 21 emerging firms, 13 minority-owned firms, 7 Connecticut-based firms, and 5 women-owned firms.*
*Total exceeds 100 percent because some investment firms are owned by individuals who represent more than one demographic category.

Expansion of the diversity of firms with which the Pension Funds Management division does business continued during the Fiscal Year. Overall, minority-owned, women-owned, Connecticut-based and emerging firms, 35 in all, comprised 26.3 percent of the firms with which the division did business; these firms earned fees of approximately $38 million, representing more than 39 percent of all fees paid by the division.