Rhode Island's pension fund earned $117 million in investment gains in January, General Treasurer Seth Magaziner announced at Wednesday's meeting of the State Investment Commission.
"As we implement our 'Back to Basics' investment strategy, the pension fund is delivering for Rhode Islanders," said Magaziner.
In 2016, the commission approved Magaziner's 'Back to Basics' plan, designed to strengthen performance and reduce risk. It includes the exit of most of the state's investments in hedge funds in favor of more traditional strategies for growth and stability.
Rhode Island expects to have exited most hedge funds by summer.
Returning 1.6% in January, the fund's market value increased to $7.8 billion, the highest in more than a year. The fund has earned more than $875 million from investments over the past 12 months. Its 12.4 return beats the plan's own 11.6% benchmark and a traditional 60% stock-40% bond portfolio, which would have returned 11.2%.
Moody's Investors Service rates Rhode Island's general obligation bonds Aa2. Fitch Ratings and S&P Global ratings assign AA.