The N.C. pension fund that provides retirement benefits for 820,000 teachers, state employees and others gained 7.94 percent in the third quarter, just missing its target of 8.05 percent.
Total assets in the plan increased to $69.7 billion as of Sept. 30, state Treasurer Janet Cowell's office reported today.
While real estate investments saw gains for the first time this year during the quarter, the fund still missed targets for global stocks, which account for half of the total assets. That category gained 12.99 percent, less than the 13.15 percent target.
“While markets recover and the possibility of a double-dip recession decreases, we still face an economy where return expectations are lower than they have been historically,” Cowell said in a prepared statement. “We will maintain a long term view and continue work to minimize risk.”
Fixed income and alternative investments, mostly in private equity, exceeded target returns.
The fund is the 10th largest public pension in the U.S.
For the year ended Sept. 30, the fund gained 9.44 percent, less than the 9.89 percent target.
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
Fund It
Tue, 12/07/2010 - 02:54 — InspectorPittWhat's most important for the state pension fund is for the state legislators to keep its promise to those who contributed to the fund, and that means the legislature needs to fund it properly. That's why the size of government needs to be cut, otherwise keeping those promises will prove harder and harder to keep.
St ate Treasurer Report
Mon, 12/06/2010 - 22:23 — pjones100Traditionally, the fund has been conservatively handled, especially by long time Treasurer Edwin Gill who served in the position for many years before retiring. I believe he was succeeded by Richard Moore, who really did not have an interest in the job and only saw it as a stepping stone to higher office, which eluded him. This treasurer seems to have her stuff together and is being conservative in handling the fund. More power to her
State Pension FUND invested ONE HALF in Foreign Stocks?????
Mon, 12/06/2010 - 20:54 — ViperRetPerhaps I misread the above article. Did it REALLY state that the Retirement Fund is 50% invested in Foreign Stocks? I don't know how to define "Global" stocks....perhaps GE is Global, as well as WalMart. What is interesting that the US S&P500 Indes gained 10.67% during the Third Quarter (1141 on 9/30 versus 1031 on 6/30). If you look at the report on the Treasurer's stie, it is around 35 - 40% Bonds or Fixed Income. There is NO breakdown on PURE International Stocks or Equities versus US Equitites. The 40% Fixed is considered reasonable, however, the Treasure should be more forthcoming with the US versus International Stock portfolio analysis....as well as the Large versus Small Cap Equity mix.