New York's state pension fund earned an estimated 11.42% return on investments for the 2017 fiscal year and grew to $192 billion, Comptroller Thomas DiNapoli announced Tuesday.

The fund valuation grew $13.4 billion, or 8%, from the close of fiscal 2016. Last year's fund grew by only 0.19% marking its worst performance since a 25% tumble in 2009 at the height of the Great Recession.

"Personal income tax collections are falling short of what was expected," says New York State Comptroller Tom DiNapoli.
"Personal income tax collections are falling short of what was expected," says New York State Comptroller Tom DiNapoli.

“Strong returns over the fiscal year, particularly in the fourth quarter, were driven by rising public equity markets,” said DiNapoli in a statement. “New York state’s pension fund is at a record value based on prudent long term asset allocation.”

DiNapoli noted that domestic equities, which comprise 37% of the fund’s total assets, recorded overall returns of 17%. The fund’s next two largest investment classes, core fixed income and non-U.S. equities, produced returns of 2% and 15%, respectively.

An April report released by Pew Charitable Trusts ranked New York’s pension system as the third highest funded in the nation at 98%. DiNapoli initiated quarterly performance reporting by the fund in 2009 as part of the Democratic comptroller’s effort to increase accountability and transparency.

New York State has bond ratings of Aa1 from Moody's Investors Service, and AA-plus from S&P Global Ratings, Fitch Ratings and the Kroll Bond Rating Agency.

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.