Treasurer Magaziner Announces Pension Fund Reaches New All-Time High of $10.79 Billion

Published on Wednesday, January 26, 2022

Pension Fund achieves 17.27% annualized return during 2021, the highest annualized return in over a decade

 

The Rhode Island pension fund continued its historically strong performance, finishing December 2021 with a new all-time high of approximately $10.79 billion after achieving an annualized return of 17.27% during 2021, the highest calendar year return since 2009. 

“My administration has prioritized strong investment performance for Rhode Island teachers, nurses, and first responders who deserve retirement security as well as all taxpayers who help fund the system,” said Rhode Island General Treasurer Seth Magaziner. “Our 'Back to Basics' investment strategy is helping the pension fund reach historic all-time highs while consistently outperforming our peers, supporting economic opportunity and providing thousands of Rhode Islanders with financial stability.” 

The pension fund’s annualized return of 17.27% significantly outperformed a traditional 60% stock / 40% bond portfolio return of 10.2%. During the month of December 2021, the pension fund grew 3.04%, outperforming a traditional 60% stock / 40% bond portfolio return of 2.3%.  

The pension fund achieved annualized returns of 15.24% and 11.26% for the trailing three-year, and five-year periods, beating the plan benchmark’s returns of 14.73% and 11.09%. A traditional 60% stock / 40% bond portfolio would have returned only 14.31% and 10.24% over the same periods, respectively. 

Additional information about the Rhode Island pension system, including the 'Back to Basics' investment strategy and performance, can be found online as part of Treasurer Magaziner's "Transparent Treasury" initiative at: investments.treasury.ri.gov 

All performance is reported on a "net of fees" basis.