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August 13, 2014

Treasurer Cowell Announces NC Pension Fund Now Valued at $90 Billion

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.

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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 www.nctreasurer.com​.