The $8 billion Employees' Retirement System of Rhode Island returned 0.41% in the June quarter, state Treasurer General Seth Magaziner said July 20 in his release of investment performance data.
Summarizing quarterly results is part of Magaziner's transparency initiative.
An allocation of 60% stocks and 40% bonds dropped 0.45% as both stock and bond markets had a tough quarter, according to Magaziner.
Bonds fell 1.68% and stocks also lagged the portfolio, with a 0.35% return for global equities and 0.28% for the S&P500. The ERSRI portfolio modestly lagged the policy benchmark's 0.54% return.
The retirement system's strongest-performing asset classes for the quarter were private equity and real estate, up 5.5% and 2.9%, respectively. Equity hedge funds were up 0.9%. The worst-performing asset classes, according to Magaziner, were infrastructure and master limited partnerships, down 5.9% and 2.6%, respectively. Oil-price weakness affected both.
The retirement system's MLP allocation still outperformed the Alerian MLP Index by 3.6%.
"I am pleased that Rhode Island's portfolio preserved value when debt and equity markets fell in the second quarter; performance was strong relative to our benchmarks," said Magaziner, who took office in January. "The financial markets remain volatile, and by minimizing downside during market selloffs we position our state's investments to deliver strong appreciation over the long term."
The Employees' Retirement System serves more than 60,000 active and retired public employees.
