PROVIDENCE, R.I. (AP) - Rhode Island’s state pension investments lost nearly 10% of their value in the year’s first quarter as the local economy grapples with the coronavirus pandemic, according to state officials.
The pension started the year with $8.8 billion in assets and had about $7.9 billion by the end of March, General Treasurer Seth Magaziner told the Providence Journal Tuesday. One of the major forces behind the decline was a 9.5% investment loss.
The fund, which pays for state employee and teacher retirement benefits, declined by $600 million just last month.
Magaziner said the losses are less severe than they could have been because the fund is “more defensively positioned” than others.
The damage was slightly lessened by $800 million in “crisis protection” investments in assets that typically appreciate during a downturn. The crisis protection assets increased 15% in value in the first quarter, he said.
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