State of Connecticut Retirement System, with $17 billion in assets, sold $650 million worth of stock and bought an equal amount of bonds yesterday in order to comply with state law limiting pension fund investments in equities to 55% of total assets, said State Treasurer Paul Silvester.
``This is a reasoned approach that is in the best interests of the state's 150,000 pensioners,'' said Mr. Silvester, the sole trustee.
``Periodically we are obliged to rebalance our portfolio to get under the 55% limit. But this is the second time in a short period we have had to do this, a sign that our investment strategy is reaping solid return for our pensioners.
Last year, the Hartford-based system sold $600 million in stock because equities had advanced beyond the 55% limit, said Mr. Silvester. Recent attempts to have the General Assembly raise the 55% limit to 60% or 65% have failed.