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.
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