August 13, 2014
Treasurer Cowell Announces NC Pension Fund Now Valued at
Fiscal Year Returns Show 15.88 Percent Gain
RALEIGH , N.C.– State Treasurer Janet Cowell reported
today that North Carolina’s pension fund returned 15.88 percent for the fiscal
year ending June 30, 2014, beating the fund’s 7.25 percent long-term target
rate of return.
Pension fund assets were valued at $90.14 billion as of
June 30, 2014. The fund has increased by
50 percent under Cowell’s leadership, from $60 billion in January 2009 when she
took office at the height of the financial crisis to what is now the third
best-funded in the nation.
“I am pleased to report that we’ve reached a new
milestone of $90 billion,” said Treasurer Cowell. “The North Carolina pension
fund is strong and well-positioned for the long-term. Our strategic,
incremental diversification efforts are showing results.”
The fund rose 3.87 percent during the second quarter of
2014, surpassing the benchmark. The stock markets, while volatile, showed gains
during the fiscal year of 24.66 percent and 4.67 for the quarter. The fixed
income portfolio continued the trend of limited growth with 6.04 percent for
the year and 2.69 percent for the quarter. The pension fund has tactically
decreased the investment in fixed income, but it continues to account for 30
percent of total assets.
The credit strategies portfolio saw a gain of 12.90
percent for the year and 2.56 percent for the second quarter. Real estate rose
12.03 percent for the year and 4.08 percent for the quarter. Alternatives were
up 17.41 percent for the year and 6.40 percent for the quarter. Within
alternatives, private equity rose 18.27 percent return over the past year. The
inflation protection portfolio was up 8.21 percent for the year and 2.54
percent for the quarter.
All returns are net of fees.
View the Second Quarter Performance Report
The North Carolina Retirement Systems, the formal name
for the pension fund, is now the eleventh largest public pension fund in the
country. It provides retirement benefits and savings for more than 900,000
North Carolinians, including teachers, state employees, firefighters, police
officers and other public workers. For more information, visit