Rhode Island State Investment Commission, Providence, committed up to $50 million to GEM Realty Fund V, which will invest in value-added U.S. properties and distressed debt and is managed by GEM Realty Capital, confirmed spokeswoman Joy Fox.
The state investment commission, which oversees the $7.55 billion Employees' Retirement System of Rhode Island, Providence, also committed up to $25 million to CVC Capital Partners VI, a European buyout fund. The pension fund has three investments in prior CVC funds.
It also committed an additional $25 million in J.P. Morgan Strategic Property Fund, bringing the total commitment to $75 million.
Separately, the pension plan returned 11.07% for the fiscal year ended June 30, below the policy benchmark of 11.29%. Domestic equity was the strongest performer, returning 20.81%. International equity and equity hedge funds returned 13.57% and 13.27%, respectively.
Real-return hedge funds returned 8.7%; private equity, 8.36%; real estate, 6.39%; traditional fixed income, 1.1%; inflation-linked bonds, 0.31%; and cash, 0.13%.
The pension plan had a three-year annualized return of 10.64%, below the benchmark of 11.19%. It returned 4.34% for five years and 7.42% for 10 years, surpassing the benchmarks for those periods by 13 and 21 basis points, respectively.