The Connecticut state pension plan achieved an 11.5% return in fiscal 2024, which ended June 30, the Office of State Treasurer Erik Russell announced Wednesday. The Connecticut system includes the Teachers’ Retirement Fund, the State Employees Retirement Fund and the Municipal Employees Retirement Fund.
Outperforming the fund’s actuarial assumed rate of return of 6.9%, Russell attributed returns to a new asset allocation strategy adopted in 2022. In fiscal 2023, the plan posted an 8.5% return.
“A lot of work has been done in recent years to strategically balance assets within the pension funds, mitigate risk and build a best-in-class investment team,” Russell said in a statement. “We’re seeing the benefit of those efforts manifest with strong returns over the last two years. More importantly, we are well positioned to build on this momentum for sustained success going forward.”
Russell’s office also announced $450 million in new commitments to the pension plan’s private markets portfolio. Up to $100 million was approved in commitments to Insight Partners Opportunities II LP, with $150 million to a sidecar opportunity from Insight Partners, a private equity software investor.
Up to $200 million was approved in commitments to Hollyport Secondary Opportunities IX LP, a private equity investor in the secondaries market with $5 billion in assets.
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Tags: Connecticut, Erick Russell, Hollyport, Insight Partners, Pensions