The $8.78 billion Rhode Island Employees' Retirement System, Providence, returned 16.65% net of fees in calendar year 2019, Treasurer Seth Magaziner's office said Thursday. The return outperformed the system's 15% benchmark, with performance led by global public equities, mainly in index funds.
In September 2016, Mr. Magaziner implemented a "back to basics" investment strategy that includes growth, income and stability strategies.
Stability assets returned 8.48%, while income returned 11.52% and growth returned 23.15%, including 25.77% in public equities and 11.02% in private investments. The public equity investments are primarily low-fee index funds.
The growth strategy target allocation is 40% global equity and 15% private growth, which includes private equity, non-core real estate and opportunistic private credit. The private equity part of the strategy is currently at 7.8% with the target of 11.25%.
The private growth allocation is currently at 10.3% with the goal of 15% within the next two years, with eight to 10 commitments a year. "We are continuing to pace into private equity and ramp that up," spokesman Evan England said in an interview.
The 8% income strategy target allocation includes infrastructure, real estate investment trusts, liquid and private credit. The stability strategy target allocation includes 8% inflation protection and 21% volatility protection.