New York State Comptroller Thomas P. DiNapoli today announced that the New York State Common Retirement Fund (Fund) earned an estimated 11.35 percent return on investments in the state fiscal year that ended on March 31, 2018. The Fund ended the year with an estimated value of $206.9 billion, which is subject to change once returns are fully audited. The Fund’s value at the end of state fiscal year 2017 was $192.4 billion.
“The New York State Common Retirement Fund’s value rose with help from strong markets through most of the fiscal year, which ended with a volatile fourth quarter,” DiNapoli said. “Fortunately, our conservative approach for gaining long term, sustainable returns protects the Fund in times of uncertainty. The Fund ended the fiscal year just as it began it, as one of the best funded, best managed pension plans in the nation. The strength and stability of our state’s pension fund is good news for the more than one million individuals in the state retirement system and for New York taxpayers.”
During state fiscal year 2018, the Fund’s public equities, including domestic and non-U.S. holdings, enjoyed overall returns of 15.03 percent. The Fund’s broader approach to fixed income markets over the last year returned 2.14 percent. The Fund’s diversification strategy performed well, with private equity and real estate delivering returns of 18.70 percent and 9.01 percent, respectively.
The Fund is the third-largest public pension fund in the country and is ranked one of the nation’s best-funded pension plans, according to Pew Charitable Trusts. 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.
Solid returns in recent years have resulted in reductions in employer contributions.
| Percent Returned | Percentage of Fund’s Total Investments | |
|---|---|---|
| Domestic Equities | 13.94% | 36.6% |
| Core Fixed Income | 2.05% | 16.8% |
| Non-US Equities | 17.02% | 15.2% |
| Private Equity | 18.70% | 8.3% |
| Real Estate | 9.01% | 6.7% |
| Global Equities | 17.49% | 5.3% |
| TIPS** | 1.25% | 3.9% |
| Absolute Return Strategies | 5.90% | 2.7% |
| Cash | 1.71% | 0.9% |
| Non-Core Fixed Income | 5.23% | 1.7% |
| Opportunistic Alternatives | 12.32% | 1.2% |
| Real Assets | 10.33% | 0.7% |
* Returns are estimated, pending audited data available later this year
** Treasury Inflation-Protected Securities
About the New York State Common Retirement Fund
The New York State Common Retirement Fund is the third largest public pension fund in the United States. The Fund holds and invests the assets of the New York State and Local Retirement System on behalf of more than one million state and local government employees and retirees and their beneficiaries. The Fund has consistently been ranked as one of the best managed and best funded plans in the nation. The Fund's fiscal year ends March 31, 2019.