The New York State Common Retirement Fund, one of the largest public pension funds in the U.S., has recently disclosed a negative 4.14% investment return for its latest fiscal year, which concluded on March 31. Despite a slight increase in value from $242.3 billion as of December 31 to $248.5 billion as of March 31, the fund’s overall value has decreased from $272.1 billion in the previous year.
This decline can be attributed to the volatility of financial markets as well as the significant retirement and death benefits amounting to $14.7 billion paid out during the year. It is worth noting that the fund has historically maintained a long-term expected rate of return of 5.9% and achieved a commendable 9.51% investment return in fiscal year 2022.
Looking ahead, New York State Comptroller Thomas DiNapoli acknowledges the challenges that lie ahead, including concerns over a potential recession and increasing interest rates. However, he expresses confidence in the fund’s ability to withstand these challenges, stating that it is “well positioned to weather these storms.” As of March 31, approximately 44% of the fund’s assets were invested in publicly traded equities, while nearly 22% comprised cash, bonds, and mortgages.
It is evident that the New York State Common Retirement Fund remains committed to prudent investment practices and navigating the ever-changing financial landscape.