“The commission’s decision was simply part of the usual monitoring and managing of the retirement portfolio and a step toward reducing risk in the portfolio’s equity hedge fund allocation,” Joy Fox, spokeswoman for Rhode Island General Treasurer Gina Raimondo, said, according to the Providence Journal.
The commission had also voted to liquidate two other hedge funds, Gracie Credit Opportunities Fund LP last January, 2013, and Wexford Spectrum Fund LP last month.
The most recent valuation confirmed the following: (Full Investment Meeting Agenda)
- The funded ratio is 56.2 percent for state employees and 58.1 percent for teachers
- For FY2016 taxpayer contribution rates and projected dollar amounts are lower than anticipated: 23.64 percent for state employees and 23.14 percent for teachers
- FY2014 MERS plans that are over 80 percent funded will experience a .67 percent cost-of-living-adjustment (66 MERS plans fit this criteria)
- FY2013 investment performance was above plan expectations
Hedge funds represent about 15 percent (of about $1.15 billion) of the $8.042-billion retirement portfolio in Rhode Island, the Journal reports.
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