TREASURER RUSSELL ANNOUNCES CONNECTICUT PENSION FUNDS GENERATED RETURNS OF 10.14% IN FISCAL YEAR 2025

09/10/2025

TREASURER RUSSELL ANNOUNCES CONNECTICUT PENSION FUNDS GENERATED RETURNS OF 10.14% IN FISCAL YEAR 2025

HARTFORD, Connecticut - On Wednesday morning, Connecticut Treasurer Erick Russell announced investment performance data for the state's pension funds. The Connecticut Retirement Plans and Trust Funds (CRPTF) reported returns of 10.14% for Fiscal Year 2025, once again substantially outpacing the assumed rate of return of 6.9%.

"Strong investment performance remains a cornerstone of Connecticut's financial success," said Treasurer Russell. "For the third consecutive year, the Connecticut Retirement Plans and Trust Funds have generated results well above our assumed rates of return. This should give confidence to retired teachers and state workers who have earned a secure retirement," said Treasurer Russell. "Moreover, this strong performance directly reduces the amount of State contributions that must be budgeted for each year, creating near and long-term savings for taxpayers and freeing up resources that the state can invest in education, housing and other critical programs."

"I'm proud to see Connecticut's pension fund continue its strong performance in FY2025 under the leadership of Treasurer Russell and the Investment Advisory Council. This progress is a reflection of sound fiscal management and growing confidence in our state's future," said Governor Ned Lamont. "The prudent fiscal measures we've taken alongside the legislature to tackle our long-underfunded pension system is saving Connecticut taxpayers hundreds of millions of dollars each year. Those savings are allowing us to invest even more in critical programs that support working families."

The returns were announced during the September meeting of the Investment Advisory Council (IAC), which shares responsibility for Connecticut's investment strategy and performance. The funds have outpaced the assumed rate of return of 6.9% in each of the last three fiscal years.

The funds benefited from $933 million in excess contributions made as part of the state's fiscal guardrails. When combined with investment earnings, total assets within the fund increased by $5.9 billion in Fiscal Year 2025.

In recent years, reforms have been put in place by the Office of the Treasurer and the IAC to index funds in low-fee, passive arrangements where possible and scale up investments in other areas with high-performing external managers. Other efforts, including bipartisan legislation passed in 2023, have given the Treasurer and Chief Investment Officer more tools to attract, develop, and retain investment talent within the agency.

The most significant driver of investment performance, however, is a new strategic asset allocation strategy that was adopted in 2022. Now in the middle of its 5-year implementation plan, the pension funds are already benefitting from the structured rebalancing of the portfolio. Asset allocation is responsible for approximately 90% of a fund's performance in any given year.

Investment Commitments Announced at September IAC Meeting

Also on Wednesday morning, Treasurer Russell announced $1.125 billion in investment commitment decisions, based on feedback received at July's IAC meeting.

In the private infrastructure and natural resources portfolio, he committed up to $200 million to HarbourVest Infrastructure Income Partnership, L.P., and up to $250 million to Palistar Digital Infrastructure Fund III, L.P.

In private credit, he committed up to an additional $300 million to Crescent CRPTF Private Credit L.P.

In private equity, he announced commitments of up to $200 million to Reverence Capital Partners PE Opportunities Fund IV (Fund VIII) L.P., and up to €150 million (approximately $175 million) to Verdane Freya XII (D1) AB.

Minutes, agendas, and meeting materials for the IAC can be found on the Office of the Treasurer's website here. Investment performance data is published regularly here, with detailed holdings and financial statements included in the agency's Annual Report released each December.

The IAC shares responsibility for Connecticut's investment strategy and performance. Its members are appointed by unions representing teachers and state workers, legislative leaders, and the Governor. It plays a key role in setting the pension funds' investment policy and asset allocation, and in the hiring of key investment personnel. All IAC meetings are open to the public. Meeting materials, including past agendas and investment presentations, are available on the Office of the Treasurer's website: portal.ct.gov/OTT/About-the-Treasury/Advisory-Council.

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Contact: Brett Cody
[email protected] | (959) 529-2468