Connecticut Retirement Plans & Trust Funds posts negative return

Connecticut Retirement Plans & Trust Funds, Hartford, returned -0.9% for the fiscal year ended June 30.

The results were “disappointing” but not surprising given worldwide market conditions, said Denise Nappier, state treasurer and principal fiduciary of the $24 billion retirement system.

Ms. Nappier made her comments Wednesday at a meeting of the state investment advisory council in Hartford, where the results were presented. The return figure is net of all fees and expenses.

Performance was adversely affected by weak market conditions in Europe, said Lee Ann Palladino, chief investment officer.

The worst-performing categories for the fiscal year were emerging markets equity, which returned -14.2%, and developed markets equity, -12.5%.

The best-performing category was inflation-linked bonds, which returned 11.9%.

Separately, Ms. Nappier announced an additional $100 million commitment by the retirement system in the Cornerstone Patriot Fund, a core real estate fund managed by Cornerstone Real Estate Advisers. The fund focuses on “stable income-producing U.S. commercial real estate investments,” according to a description provided by the treasurer's office. The retirement system previously committed $75 million in the Cornerstone Patriot Fund.

The pension fund also committed up to $25 million to SW Pelham IV, a private equity mezzanine debt fund managed by Smith Whiley and Co. It had previously committed $70 million in two other Smith Whiley funds.

Both the Cornerstone and Pelham commitments are contingent upon successful contract negotiations.