New York State's $178 billion pension fund had its worst fiscal year since the Great Recession, Comptroller Thomas DiNapoli announced Monday.
The fund returned 0.19% on investments for the fiscal year that ended March 31. A year ago the fund grew 7.16% and was valued at $183.5 billion. The 2016 performance marked the worst for the fund since a steep 25% drop in 2009.
"Despite weak equity markets, the Fund's diversified portfolio and our investment team delivered a positive return," said DiNapoli in a statement. "We continue to have confidence in our asset allocation for the long term."
New York has the third-largest public pension fund in the nation. The fund has a 7% long-term expected rate of return.
A June 1 report from Moody's Investors Service noted that New York State has kept unfunded pension liabilities largely in check by increasing contributions as funding needs rise. New York had the eighth lowest adjusted net pension liability of all states, with pensions at only 28% of revenues as of 2014, according to Moody's.
New York is rated Aa1 by Moody's Investors Service, and AA-plus by Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency.
