7/20/2017
Contact: Frank Lester (919) 814-3811
FOR IMMEDIATE RELEASE
July 20, 2017
Treasurer Folwell Reports 10.6 Percent Increase for Fiscal Year Pension Returns
Fund Balance Hits All-Time High during 2nd Quarter
RALEIGH, N.C. - State Treasurer Dale R. Folwell, CPA, today reported preliminary state pension fund (the Fund) returns for the second quarter of 2017 ending June 30, 2017. The Fund, comprised of the retirement plans the Department of State Treasurer manages, reported gains of 2.7 percent for the quarter. Pension fund assets were valued at $93.9 billion, up from $92.2 billion at the end of the first quarter of 2017. These figures and all of the following performance figures are reported net of all fees and expenses.
For the fiscal year ending June 30, 2017, the preliminary report indicates the Fund earned 10.6 percent. Public equity (stocks), which makes up almost 40 percent of the total fund, gained 19.0 percent. Private equity rose 9.5 percent while Non-Core Real Estate and Opportunistic Fixed Income returned 10.8 percent and 10.9 percent respectively.
The Multi-Strategy portfolio rose 12.9 percent for the twelve month period. Inflation-Sensitive and Core Real Estate investments also increased by 11.1 percent and 8.2 percent respectively. Finally, Investment-Grade Fixed Income returned a loss of 0.3 percent for the same period.
“The Fund achieved its highest valuation ever during the second quarter of the year,” said Treasurer Folwell. “In this low interest rate environment, we are pleased our funds did so well, while at the same time, the pension fund as a whole had less exposure to risk. I want to thank those responsible for this great performance but I am cautious about returns going forward.”
Since beginning his first term in January, Treasurer Folwell has aggressively set out to reduce fees paid to Wall Street. During the last fiscal year-end report, those fees exceeded $600 million dollars while investment gains were only 0.8 percent. To date, more than $60 million in fees have been cut for a run rate during his first term of at least $240 million. In addition, Treasurer Folwell has renegotiated contracts across the divisions of the Department of State Treasurer that have saved taxpayers tens of millions of dollars.