DiNapoli: Pension Fund Earns 14.6% Return for Fiscal Year 2011
CRF Valued at $146.5 Billion
The New York State Common Retirement Fund (Fund) earned a 14.6 percent rate of return for the fiscal year ending March 31, 2011, according to an estimate New York State Comptroller Thomas P. DiNapoli released today. The estimated value of the Fund is $146.5 billion, the highest since the global economic downturn in fiscal year 2008-2009.
“The Fund remained resilient during a tough economic period,” DiNapoli said. “We’ve come a long way back. The strong returns should reassure our beneficiaries and New York taxpayers that the Fund is strong and sustainable. New York has always paid its pension bills on time and we’ve invested wisely. Over the last 20 years, 83 percent of the costs of benefits have been funded from investment returns.
“There still are reasons to be cautious about the ongoing recovery, but the results are a good sign that the Fund has weathered the worst of the downturn. We’re on the right course.”
DiNapoli credited strong returns from the domestic and international equities market for the Fund’s performance. Domestic public equities returned 17.6 percent, while international public equities returned 14.3 percent. Real estate investments yielded a 26.7 percent return, while private equity investments generated an 18.9 percent return. The Fund’s emerging markets equities returned 16.1 percent, while Treasury Inflation-Protected Securities yielded 9.7 percent and core fixed-income investments returned 8 percent.
In September 2010, the Fund lowered its assumed investment rate of return to 7.5 percent. The Fund is the third-largest public pension fund in the nation and is ranked among the top funds for funded status by The Pew Center on the States for the second year in a row. The New York State and Local Retirement System provides benefits for more than one million state and local government employees, retirees and beneficiaries.