New York's common retirement fund has lost billions of dollars in value since April, a reflection of the ongoing troubles facing the financial markets.
State Comptroller Tom DiNapoli's office on Tuesday announced the fund was valued at $232.2 billion at the end of the second fiscal quarter on Sept. 30, posting a negative rate of return at 3.85%. Still, despite the ongoing challenges, DiNapoli said the fund remains built to withstand the economic uncertainty.
But it's also another indicator of how the markets can affect the broader fiscal structure of New York state.
“The recent volatility in the markets and concerns over the state of the economy have hit investors hard,” DiNapoli said. “Inflation and supply chain issues are continuing to impact the financial world and we expect a challenging investment environment for the foreseeable future. Still, the Fund is highly diversified and built to weather the ups and downs of the markets. Our pensioners and members can remain confident that their benefits are safe.”
The pension fund was valued at $272.1 billion at the start of the fiscal year, and paid out $3.7 billion in retirement and death benefirst during the second quarter. It's long-term expected rate of return is 5.9%.