New York State Comptroller Thomas DiNapoli announced that the New York State Common Retirement Fund earned an estimated 11.42% return on investments in the state fiscal year that ended on March 31, 2017. The Fund has an estimated value of $192 billion.
The fund earned its best annual return since 2014 when it had a 13.02% rate of return.
“Strong returns over the fiscal year, particularly in the fourth quarter, were driven by rising public equity markets,” DiNapoli said. “New York state’s pension fund is at a record value based on prudent long term asset allocation. We continue to manage one of best funded, best performing pension plans in the nation and that’s great news for the more than one million men and women who participate in it, as well as for New York taxpayers.”
Over fiscal year 2017, domestic and non-U.S. equities enjoyed overall returns of 17.01%. The Fund’s broader approach to fixed income markets over the last year returned 2.91%. The Fund’s diversification strategy performed well, with private equity and real estate delivering returns of 7.02% and 10.68%.
The Fund is the third-largest public pension fund in the country and remains one of the nation’s best-managed and best-funded pension plans. The New York State and Local Retirement System provides retirement security to more than one million active state and local government employees, retirees and their beneficiaries. Employer contribution rates are determined by investment results over a multi-year period along with numerous other actuarial assumptions, including wage growth, inflation, age of retirement and mortality. The Fund’s long-term expected rate of return is 7 percent.
In April, the Pew Charitable Trusts ranked New York’s pension system as the third best funded retirement system in the nation.
The Fund’s value and rate of return in prior years is available online: http://osc.state.ny.us/press/releases/may17/nyscrf_values_chart_2017.pdf