Connecticut Retirement returns 11.5% for fiscal year

Connecticut Retirement Plans & Trust Funds, Hartford, returned a net 11.5% for the fiscal year ended June 30, below its benchmark return of 12.9%, according to a year-end performance review presented at the Sept. 11 meeting of the investment advisory council.

For the three- and five-year periods ended June 30, the $56.8 billion pension fund returned an annualized net 3.8% and 7.2%, respectively. Benchmark returns were not provided for these periods.

For the 10 years ended June 30, the pension fund returned an annualized net 6.6%, just above the 6.4% return for its benchmark.

The pension fund had returned a net 8.5% for the fiscal year ended June 30, 2023.

By asset class, the top performer for the latest fiscal year was domestic equity, which returned a net 24.2%; followed by emerging markets equity, 14.9%; developed markets equity, 12.7%; private credit, 11.2%; noncore fixed income, 9.7%; private equity, 7.5%; liquidity fund, 5.6%; infrastructure and natural resources, 4.1%; core fixed income, 3.7%; and risk-mitigating strategies, 0.9%.

The poorest performer, real estate, returned a net -4.8%.

As of June 30, the pension fund’s actual asset allocation was 48.9% global equity (target 37%); 20.1% global fixed income (15%); 11.3% private equity (15%); 6.2% real estate (10%); 5% private credit (10%); 4.5% risk-mitigating strategies (5%); 2.9% infrastructure and natural resources (7%); and 1.1% liquidity fund (1%).