Connecticut's two largest pension funds each posted net investment returns of nearly 16% for the fiscal year ended June 30, state Treasurer Denise Nappier said.
The Teachers' Retirement Fund and State Employees' Retirement Fund posted net investment returns of 15.67% and 15.62%, respectively, Nappier said in an Aug. 13 statement. According to Nappier, they exceeded their respective customized benchmarks of 15.25% and 15.41%, and far surpassed the funds' actuarial investment assumptions of 8.5% and 8%.
The market value of the pension assets for TERF and SERF was about $16.2 billion and $10.5 billion, respectively, as of June 30. Investment gains totaled $3.8 billion, she said.
After combined net withdrawals of $760.4 million, including benefit payments, fees and expenses, the two pension funds jointly had a total value of roughly $26.7 billion as of June 30 — a net increase of $3.06 billion over the previous fiscal year ended June 30, 2013.
"These two pension funds — representing 91% of the state's pension and trust fund portfolio — profited handsomely from the market's performance. We are rightly proud of it," Nappier said.
Moody's Investors Service rates Connecticut's general obligation bonds Aa3. Standard & Poor's, Fitch Ratings and Kroll Bond Rating Agency all assign AA ratings.
