Fiscal Year 2018 in ReviewThe Connecticut Retirement Plans and Trust Funds ("CRPTF") posted net investment returns of 7.30 percent for the State Employees' Retirement Fund and 7.04 percent for the Teachers' Retirement Fund for the period ended June 30, 2018. The two funds comprise more than 90 percent of the CRPTF.
Robust performance results of 15.50 percent and 14.74 percent in the Private Investment and Mutual Equity Funds, respectively, boosted the overall CRPTF fiscal year end net asset value to $34.2 billion, a $1.6 billion net increase from June 30, 2017 and a new all-time fiscal year end record. The CRPTF posted a net investment return of 7.0 percent for Fiscal Year 2018.
Over the course of the fiscal year, the CRPTF made commitments in excess of $2 billion: Nine investment opportunities in the Private Investment Fund, two in the Real Estate Fund, six in the Alternative Investment Fund and two in the Core Fixed Income Fund.
Additionally, the Office of the Treasurer issued a Request for Proposals for real estate investment consulting sercices for the CRPTF; the search was near completion at fiscal year end.
The Connecticut Horizon Fund ("CHF"), an initiative of Treasurer Nappier to provide the Office access to a wider number of women and minority-owned, Connecticut-based and emerging investment management firms, has $1 billion in assets in its fund-of-funds public market program, a $155 million private equity allocation and a $170 million alternative investment allocation. As of June 30, 2018, the public market program totaled 4 managers and 35 sub-managers. Emerging firms represented the largest allocation of total assets at 69 percent; minority-owned firms represented 40 percent; women-owned firms followed with 29 percent; and Connecticut-based firms were at 17 percent of total assets.* Additionally, there were 3 private equity managers and 22 sub-managers; including 8 minority-owned, 4 emerging, 1 women-owned and 9 Connecticut-based. In the separately managed Fund-of-Hedge Fund mandate within the Alternative Investment Fund, there were 2 managers and 27 sub-managers; the breakdown includes 22 emerging firms, 13 minority-owned firms, 7 Connecticut-based firms, and 6 women-owned firms.*
*Total exceeds 100 percent because some investment firms are owned by individuals who represent more than one demographic category.
Expansion of the diversity of firms with which the Pension Funds Management division does business continued during the Fiscal Year. Overall, minority-owned, women-owned, Connecticut-based and emerging firms, 35 in all, comprised 26.3 percent of the firms with which the division did business; these firms earned fees of approximately $40 million, representing more than 38 percent of all fees paid by the division.