The estimated rate of return for the New York State Common Retirement Fund’s estimated rate of return for the quarter ending Dec. 31 was 5.14 percent, boosting its value to some $173.2 billion, state Comptroller Thomas DiNapoli announced today. That’s $12.5 billion more than the $160.7 billion that was in the pension fund at the end of the last state fiscal year, March 31, 2013.
The Common Retirement Fund is the third largest public pension plan in the United States. It has more than one million members, retirees and beneficiaries from more than 3,000 state and local government employers. DiNapoli is the sole trustee of the pension fund.
“The New York State Common Retirement Fund enjoyed a robust third quarter that saw continued strong performance in domestic and developed international equities markets,” DiNapoli said in a statement. “Our investment strategy is geared toward consistently achieving long term results but we watch the markets closely to capitalize on emerging opportunities.”
The pension fund has 37.6 percent of its assets invested in publicly traded domestic equities and 17.1 percent in international public equities. Nearly 28 percent of the remaining assets by allocation are invested in cash, bonds and mortgages; 7.8 percent in private equity, 6.6 percent in real estate, 3.1 percent in absolute return strategy and 0.2 percent opportunistic strategy alternatives, according to DiNapoli.
DiNapoli initiated quarterly performance reporting for the pension fund in 2009 as part of ongoing efforts to increase accountability and transparency. Eighty percent of the cost of benefit payments has been funded by investment returns over the past 20 years.