Connecticuts state pension funds are positioned to weather recent market troubles and achieve its long-term financial objectives, state Treasurer Denise Nappier told the states General Assemblys Banks Committee today.
Ms. Nappier, sole trustee of the $26 billion Connecticut Retirement Plans & Trust Funds, Hartford, said the funds returned -4.27% on investments for the fiscal year ended June 30, compared to 17.3% for the previous fiscal year. She said other large pension funds with more exposure to alternatives did not have as great a loss.
If this market storm is going to continue, we need to adopt or bring into the portfolio some investment strategies that have a low correlation to stocks and bonds, Ms. Nappier told the committee.
As part of a previously approved asset allocation change, the funds plan to add an 8% exposure to alternatives, Ms. Nappier said.