Treasurer Erick Russell Conducts First Investment Advisory Council Meeting, Announces $1 Billion In Investment Commitments
Rice, Cheryl
FOR IMMEDIATE RELEASE // FEBRUARY 8, 2023
Treasurer Erick Russell Conducts First Investment Advisory Council Meeting, Announces $1 Billion In Investment Commitments
HARTFORD, CT – Treasurer Erick Russell led his first meeting of Connecticut’s Investment Advisory Council (IAC) on Wednesday, announcing $1 billion in new investment commitments for the state’s pension funds.
“Maximizing the returns in our pension funds is of vital importance for the long-term financial health of the state and the retirement security of state and municipal retirees,” said Treasurer Russell. “The IAC plays a critical role in aligning our investment goals with our commitment to building a solid fiscal foundation for Connecticut’s future.”
The meeting began with an update on the investments that were reviewed by the IAC during December’s meeting. In the state’s Private Investment and Private Credit portfolios, Treasurer Russell announced that his office had committed an additional $300 million each to HarbourVest CT Co-Investment Fund LP and HarbourVest CT Private Debt Fund LP. In the Infrastructure and Natural Resources portfolio, he announced that the Treasurer's office approved two mandates: a commitment of $200 million to CT Real Assets Co-Investment Fund LP, which is an expansion of an existing infrastructure commitment, and $200 million to BlackRock Global Infrastructure Fund IV, LP.
General investment consultant Meketa reported on fourth quarter performance and provided the group with an update on the overall capital market environment. Peter Gajowiak, Principal Investment Officer, presented an overview of Pensions Fund Management (PFM) division operations.
With regard to prospective investments, Mark Evans, Principal Investment Officer, presented Vistria Fund V, a Private Investment Fund opportunity. In the area of Real Estate, Infrastructure and Natural Resources, Principal Investment Officer Denise Stake presented Global Infrastructure Partners V, an Infrastructure Fund opportunity.
William Myers was also introduced as a new member of the IAC. Mr. Myers is a retired teacher who will serve as a representative of the state teacher’s unions on the committee.
“I very much appreciate the counsel of the IAC as we work together to adeptly position the Connecticut Retirement Plans and Trust Funds for future success,” said Treasurer Russell. “I’m fortunate to have such an accomplished group to assist in evaluating our investment opportunities, and I’m happy to have them on our team.”
***
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and nine state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
*** END ***
_______________
Cheryl D. Rice
Press Secretary
State of Connecticut – Office of the Treasurer
165 Capitol Ave. Hartford, CT 06106
Cell: (860) 993-4037
Rice, Cheryl
FOR IMMEDIATE RELEASE // MARCH 8, 2023
Treasurer Erick Russell Announces $375 Million in Investment Commitments
at March Investment Advisory Council Meeting
HARTFORD, CT – In Wednesday’s meeting of the state’s Investment Advisory Council (IAC), Connecticut State Treasurer Erick Russell announced two pension fund investment commitments totaling $375 million.
“I appreciate the role the IAC played in reviewing and evaluating these additions to our investment portfolio,” said Treasurer Russell. “I believe these funds align well with our priorities and demonstrate solid long-term growth potential.”
In the state’s Private Investment portfolio, Treasurer Russell announced that his office had committed $175 million to Vistria Fund V, LP. In the Infrastructure and Natural Resources portfolio, he announced a commitment of $200 million to Global Infrastructure Partners V, LP.
Also in Wednesday’s meeting, Chief Investment Officer Ted Wright reported on Connecticut Retirement Plans and Trust Funds (CRPTF) performance attribution, and general investment consultant Meketa provided a CRPTF liquidity analysis.
Wright, along with Principal Investment Officers Denise Stake and Peter Gajowiak, presented an overview of the recommendation for General and Real Assets Investment consulting services. This is the result of an RFP issued by the Office of the Treasurer in September 2022.
Regarding prospective investments, Principal Investment Officer Mark Evans presented the following Private Equity opportunities: JFL Equity Investors VI, LP; K6 Private Investors, LP; One Rock Capital Partners IV, LP; and One Rock Emerald Fund, LP.
“There’s no doubt that the market remains volatile,” said Treasurer Russell. “It’s important that the CRPTF remain focused on smart, strategic diversification, and we’ll continue to evaluate a broad scope of investment opportunities to continue to meet that goal.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // MAY 1, 2023
TREASURER RUSSELL REPORTS STRONG QUARTERLY PERFORMANCE
IN THE SHORT-TERM INVESTMENT FUND
HARTFORD, CT – Treasurer Erick Russell today released the latest quarterly update for the Short-Term Investment Fund (STIF), showing the fund outperforming its benchmark during the quarter and over a one-year period, earning millions in interest for state and local governments.
STIF serves as an investment vehicle for cash held by the state, municipalities, state agencies and authorities, and other political subdivisions including quasi-public agencies. Its objective is to generate returns while protecting principal investments and maintaining liquidity so accountholders can instantly access money for cash-flow purposes.
For the quarter ending March 31, 2023, the fund earned 4.56 percent, 0.18 percent higher than similar funds measured by the iMoney Net benchmark, an independent data analysis tool for money market funds. This performance resulted in interest earnings of an additional $9.7 million. Over the past year, the fund earned 2.85 percent, reflecting a 0.20 percent outperformance versus the benchmark, with additional interest earnings totaling $33.9 million. The current STIF rate of 4.9% is higher than at any point in last 15 years.
“The Short-Term Investment Fund is an essential resource, especially for local governments, and I’m pleased to see it continue to live up to its promise,” said Treasurer Russell. “At a time when there is nationwide attention being paid to stability in the banking sector, the fund is providing a dependable and effective option to safeguard the money of taxpayers and generate interest earnings for Connecticut’s cities and towns.”
STIF held no investment in the banks under the greatest strain during the recent run of failures, including Silicon Valley Bank, Signature Bank, and Credit Suisse. Because of its focus on liquidity, the fund takes a cautious approach to its investments, limiting its bank exposure to the largest, best-capitalized financial institutions.
The fund is managed by the Office of the Treasurer, utilizing the agency’s various divisions for insight into the markets, securities, and entities in which it invests. Representatives from the office have been meeting with municipalities to raise awareness of the fund and directly answer questions, most recently presenting at an April meeting of the Government Finance Officers Association of Connecticut.
“I’m fortunate to have such skilled and dedicated colleagues working to ensure this fund is fiercely protecting the investments of municipalities, the state and other accountholders,” said Treasurer Russell. “The Short-Term Investment Fund is a great example of how we can utilize the talent and expertise of the agency to support taxpayers across the state. I look forward to its continued success.”
***
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and nine state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
Rice, Cheryl
FOR IMMEDIATE RELEASE // MAY 10, 2023
Treasurer Erick Russell Announces $500 Million In Private Investment Portfolio Commitments at May Investment Advisory Council Meeting
HARTFORD, CT – In Wednesday’s meeting of Connecticut’s Investment Advisory Council (IAC), State Treasurer Erick Russell announced four pension fund investment commitments totaling $500 million.
These investments were all in the state’s Private Investment portfolio. They included $200 million to K6 Private Investors, LP; $150 million to JFL Equity Investors VI, LP; $100 million to One Rock Capital Partners IV, LP; and $50 million to One Rock Emerald Fund, LP.
“As always, I appreciate the guidance provided by the IAC as we make these allocation decisions,” said Treasurer Russell. “These are sound additions to our Private Investment portfolio, and I believe they represent excellent potential for strong returns.”
General investment consultant Meketa opened the meeting with an update on the capital market environment and a report on the Connecticut Retirement Plans and Trust Funds (CRPTF) quarterly performance.
Also in Wednesday’s meeting, Principal Investment Officer Denise Stake presented Grain Communications Opportunity Fund IV, a Real Assets Fund opportunity for consideration. Mark Evans, Principal Investment Officer, along with Investment Officers Kan Zuo and Carmen Melaragno, presented Hg CT1 Co-Investment LP and Hg Titan 2, LP, Private Investment Fund and Private Credit Fund opportunities, as well as Dover Street XI LP and Secondary Overflow Fund V LP, Private Investment Fund opportunities.
The IAC was also briefed on the Connecticut Freedom of Information Act and Corporate Governance activities, and they were provided with an overview of the CRPTF Watchlist process.
“The Investment Advisory Council is a vital partner in our decision-making process as we plan for long-term growth of the CRPTF,” said Treasurer Russell. “They devote considerable time and talent to serving on this committee. I’m grateful to all of them for the commitment they demonstrate each month.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // JUNE 14, 2023
Treasurer Erick Russell Announces $725 Million
In Commitments Across Real Assets, Private Credit,
and Private Investment Portfolios During June Investment Advisory Council Meeting
HARTFORD, CT – In Wednesday’s meeting of Connecticut’s Investment Advisory Council (IAC), State Treasurer Erick Russell announced five pension fund investment commitments totaling $725 million.
These investments included $150 million to Grain Communications Opportunity Fund IV L.P. in the state’s Real Assets portfolio, $150 million to Hg Titan 2 L.P. in the Private Credit portfolio, and three commitments in the Private Investment portfolio: $75 million to Hg CT1 Co-Investment L.P., $175 million to Dover Street XI L.P., and $175 million to Secondary Overflow Fund V L.P.
Treasurer Russell, who led the meeting virtually while attending the National Association of State Treasurers Management Symposium in Oregon, also updated the IAC on the recent passage of legislation designed to improve the IAC’s ability to attract and retain experienced investment talent.
“The IAC is an integral part of Connecticut’s fiscal future, sharing in the responsibility to shape, evaluate and execute our investment strategies. Some of the statutory restrictions on potential IAC members were unnecessarily constraining, and were a barrier to recruiting additional qualified, expert investment professionals to serve,” said Treasurer Russell. “I applaud the legislature and Governor Ned Lamont for expanding eligibility for the IAC and for giving my office more flexibility to attract and retain in-house talent. I believe these measures are good news both for the IAC and for the state’s retirement plans and trust funds.”
Ted Wright, Connecticut’s Chief Investment Officer, opened the meeting with an update on the Pension Fund Management division of the Treasurer’s office.
Denise Stake, Principal Investment Officer, and Philip Conner, Investment Officer, presented Penwood Select Industrial Partners VII, L.P., which is a Real Estate Fund opportunity.
Mark Evans, Principal Investment Officer, along with Investment Officers Kan Zuo and Carmen Melaragno, presented Altaris Health Partners VI, L.P. and Altaris Health Partners VI Co-Investment Sidecar, and CT-Top Tier Venture FOF. These are Private Investment Fund opportunities. They also presented OSP Value Fund IV, LP and OSP Value Fund IV-B, which are Private Credit Fund opportunities.
Nishant Upadhyay, Principal Investment Officer, presented an investment opportunity in the Shenkman CBO Fund.
“I want to express my gratitude to the investment professionals who donate their time and expertise to serving on the IAC,” added Treasurer Russell. “Our legislative victory this session will only serve to enhance this committee, and I think it’s a great example of how we can work collaboratively with lawmakers to advance our shared goal of having a world-class investment team representing Connecticut’s interests.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // JULY 26, 2023
Treasurer Erick Russell Announces Two Investment Consulting Agreements and
$910 Million In Investment Commitments At July Investment Advisory Council Meeting
HARTFORD, CT – On Wednesday, Connecticut State Treasurer Erick Russell announced seven pension fund investment commitments totaling $910 million at a special virtual meeting of the state’s Investment Advisory Council (IAC). The decisions were based on feedback he received from the IAC at their June meeting.
These investments were spread across multiple asset portfolios:
- In the Real Estate portfolio, Treasurer Russell announced his decision to commit $100 million to Penwood Select Industrial Partners VII, L.P.
- In the state’s Private Investment portfolio, he announced three commitments: $150 million to Altaris Health Partners VI, L.P., $50 million to Altaris Health Partners VI Co-Investment Sidecar, and $300 million to CT-Top Tier Venture FOF.
- In Private Credit, he announced commitments of $155 million to OSP Value Fund IV, L.P. and $55 million to OSP Value Fund IV-B, L.P.
- In the Fixed Income portfolio, Treasurer Russell announced his decision to commit $100 million to the Shenkman CBO Equity Fund.
Additionally, the Treasurer reported that two contracts for investment consulting services have concluded, following the recommendations of Treasury staff and the IAC. The office has contracted with Meketa for General Investment Consulting and Albourne for Real Estate, Infrastructure and Natural Resources consulting.
“Our procedure for reviewing and evaluating these consulting partners has been rigorous,” said Treasurer Russell. “I am happy to report that we’ve wrapped up the process with Meketa and Albourne, and I look forward to taking full advantage of their counsel and expertise.”
Also in Wednesday’s meeting, Principal Investment Officer Mark Evans and Investment Officer Carmen Melaragno presented Bregal Sagemount IV, L.P., a Private Credit Fund opportunity, and Chief Investment Officer Ted Wright presented recommendations for pension fund management staffing and personnel classifications.
“Today’s commitments represent a continuation of the progress being made to maximize fund performance, in addition to new provisions in the recent legislative session allowing us to make some important improvements to the operation of the IAC,” added Treasurer Russell. “We have enhanced our ability to attract and retain the best investment professionals both on the IAC and in our pension fund management team. I’m excited to see the implementation of these changes. We are building a world-class investment team that’s working on behalf of the people of Connecticut.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // SEPTEMBER 13, 2023
Treasurer Erick Russell Announces Strong Year-End Investment Performance,
$200 Million in New Commitments at September Investment Advisory Council Meeting
HARTFORD, Connecticut – On Wednesday, Connecticut State Treasurer Erick Russell announced that the state’s pension funds have outperformed investment benchmarks over the past fiscal year.
The update, given during the September meeting of the Investment Advisory Council (IAC), shows the Teachers' Retirement Fund ("TERF") and the State Employees' Retirement Fund ("SERF") generated net investment results of 8.35% and 9.02% respectively for Fiscal Year 2023. Across the full portfolio of Connecticut Retirement Plans and Trust Funds (CRPTF), the positive investment performance added an estimated $1.1 billion in plan assets during Fiscal Year 2023.
“Reforms that have been put in place to strengthen our investment returns are starting to produce positive results,” said Treasurer Russell. “As long-term investors, single year returns are not how we measure success, but I’m confident that we will build on this work and continue towards our goal of being among the best performing public investors in the nation. Maximizing pension investments is important, not just for the retirement security of retired teachers, state and municipal workers, but for all state residents. Strong returns will free up resources for other budgetary priorities, including long-term investments in our communities, and complement the progress that’s been made to build reserves and stabilize state finances. I’m grateful to the IAC and the team in my office that have worked so hard to get to this position, and I look forward to continued success going forward.”
The investment performance comes after the Office of the Treasurer and IAC rewrote the Investment Policy Strategy in 2022 and made targeted changes to asset allocations and risk mitigation strategies. Legislation passed this past session will improve retention, recruitment and professional development opportunities within the agency, and expanded eligibility for members of the IAC.
"The volunteer members of the IAC are proud to serve and share responsibility for Connecticut's investment strategy and performance," said Ellen Shuman, Chair of the Investment Advisory Council. "Together, we have implemented several significant changes to rebalance assets, improve manager selection, mitigate risk, and position the CRPTF for sustained, long-term growth. While the results for FY23 are promising and evidence that we are heading in the right direction, our efforts are aimed at maximizing performance over multi-year intervals. It will be crucial to maintain our positive momentum and build on this encouraging progress."
For the longer-term period of 10-years, ending June 30, 2023, both the TERF and the SERF plans outperformed benchmarks, generating net investment results of 6.94% and 7.04%, respectively.
Also in Wednesday’s meeting, Treasurer Russell announced two upcoming investment commitments totaling $200 million, based on input he received at July’s IAC meeting. Both investments are in the state’s private credit portfolio: $125 million to Bregal Sagemount Credit Opportunities Series 2023 and $75 million to Bregal Sagemount Direct Lending Series 2023.
Potential investments in two categories were also reviewed at the meeting. Principal Investment Officer Denise Stake and Investment Officer Philip Conner presented Blue Owl Real Estate Fund VI, L.P., a Real Estate Fund opportunity. Principal Investment Officer Mark Evans and Investment Officer Carmen Melaragno presented Leeds Equity Partners VIII, LP, a Private Investment Fund opportunity.
Rice, Cheryl
FOR IMMEDIATE RELEASE // NOVEMBER 8, 2023
Treasurer Erick Russell Announces $375 Million in New Commitments at November Investment Advisory Council Meeting
HARTFORD, Connecticut – During Wednesday’s meeting of Connecticut’s Investment Advisory Council (IAC), State Treasurer Erick Russell announced $375 million in investment commitments in the state’s private investment and real estate portfolios.
In private investment, the Treasurer has decided to commit $150 million to Leeds Equity Partners VIII, L.P., along with $25 million to Leeds Co-Investment Sidecar. In real estate, he announced a commitment of $200 million to Blue Owl Real Estate Fund VI, L.P. These investment decisions were based on input and feedback the Treasurer received during the September meeting of the IAC.
“These opportunities in real estate and private investment represent outstanding prospects for growth and diversification in the state’s portfolio,” said Treasurer Russell. “As always, I deeply appreciate the collaboration of the IAC in the process of evaluating and selecting our investment funds.”
Also in Wednesday’s meeting, the IAC reviewed investment opportunities representing a range of sectors. Principal Investment Officer Mark Evans and Investment Officer Carmen Melaragno presented ICG Strategic Partnership, a Private Credit Fund opportunity. Principal Investment Officer Denise Stake and Investment Officer Philip Conner presented Penzance Real Estate Fund III L.P., a Real Estate Fund opportunity. Stake, along with Senior Investment Officer Olivia Wall, also presented Stonepeak Infrastructure Fund V L.P. and Homestead Capital USA Farmland Fund IV L.P., which are Infrastructure and Natural Resources Fund opportunities.
In addition, the IAC received a presentation on the 2023 Fiscal Year Performance Attribution of the Global Equity Portfolio, as well as a review of the 2023 proxy season in corporate governance and a preview of the 2024 proxy season.
The IAC is comprised of volunteer members who are responsible for providing advice to the State Treasurer on performance benchmarks, investment and shareholder policy, and institutional investment procedures for the Connecticut Retirement Plans and Trust Funds (CRPTF). It includes both ex-officio members and members who are appointed by the Governor and legislative leaders.
Rice, Cheryl
FOR IMMEDIATE RELEASE // NOVEMBER 16, 2023
“CT BABY BONDS” HONORED AS INNOVATIVE FINANCING DEAL OF THE YEAR BY THE BOND BUYER
HARTFORD, Connecticut – The financing solution funding Connecticut’s first-in-the-nation “CT Baby Bonds” program has been awarded The Bond Buyer’s Deal of the Year in the category of “Innovative Financing,” the publication announced on Wednesday. Connecticut is also eligible for the overall Deal of the Year Award, which will be presented in December.
The Bond Buyer is a national daily print and online news source, covering public finance and the municipal bond industry since 1891.
“CT Baby Bonds is an unprecedented investment in Connecticut children and their economic future. The landmark public finance transaction that funded the program is representative of our state’s commitment to combatting systemic poverty and creating economic opportunity,” said Connecticut Treasurer Erick Russell. “As the first state to pass and implement a baby bonds program, Connecticut stands at the forefront in developing government initiatives to promote social equity. Our state is inspiring others to pursue baby bonds programs of their own. As they do so, I encourage them to leverage the tools of public finance to ensure those programs are sustainable and cost-effective. I’m extremely proud of the creative and collaborative work that went into securing this funding and grateful for the recognition by The Bond Buyer.”
Eligibility for CT Baby Bonds began on July 1, 2023. Connecticut children born into poverty will have up to $3,200 invested on their behalf. Over time, those investments will grow. Between the ages of 18-30, participants can file claims to use the full amount – estimated to be between $11,000 – 24,000 – for specific purposes intended to help build generational wealth. Those include buying a home in Connecticut, starting or investing in a Connecticut business, paying for education or job training, or saving for retirement. Parents of eligible children do not need to take any action to enroll.
In its announcement, The Bond Buyer wrote: “The Innovative Financing winner is the state of Connecticut for its ‘CT Baby Bonds’ program, a measure to combat systemic poverty by investing directly in children at birth. After the originally planned $600 million bond sale was shelved due to funding concerns, the state instead substituted an existing bond reserve fund with surety policy, providing multi-year funding assurance for the program, fully funding the CT Baby Bonds Trust up front, while maintaining its commitment to existing bondholders.”
“The funding solution for CT Baby Bonds relied on many tools in the public finance toolbox: repurposing an existing bond reserve fund, providing multi-year funding assurance for the program, and maintaining bond covenant commitments to existing bondholders,” said Connecticut Deputy Treasurer Sarah Sanders. “Not only did it significantly lower the total cost of the program by immediately investing a large amount upfront to generate maximum returns, but it also offered stability to CT Baby Bonds participants by removing the need for ongoing bonding or legislative action.”
The Deal of the Year awards were established by The Bond Buyer to recognize outstanding achievements in municipal finance. This is the 22nd year that the publication has presented the awards.
According to The Bond Buyer, their editorial board considered a range of factors when judging nominations, including “creativity, the ability to pull a complex transaction together under challenging conditions, the ability to serve as a model for other financings, and the public purpose for which a deal's proceeds were used.”
The Bond Buyer will honor Connecticut and other awardees at a ceremony in New York City on December 5, 2023, where one of them will be selected as the national Deal of the Year.
Rice, Cheryl
FOR IMMEDIATE RELEASE // JANUARY 11, 2024
TREASURER ERICK RUSSELL ANNOUNCES $1.1 BILLION
IN NEW INVESTMENTS AT FIRST IAC MEETING OF 2024
HARTFORD, Connecticut – On Wednesday afternoon, Connecticut’s Investment Advisory Council (IAC) convened their first meeting of 2024 at the State Office Building in Hartford. State Treasurer Erick Russell opened the meeting by announcing more than $1.1 billion in investment commitments in the private credit and real estate portfolios of the Connecticut Retirement Plans and Trust Funds (CRPTF).
In private credit, the Treasurer committed $125 million to ICG North America Credit Partners Fund III LP and $200 million to ICG Liquid Credit Strategies, including ICG Global Loan Fund and ICG Global Total Credit Fund.
Treasurer Russell also announced two European credit investment commitments. He will direct €150 million to ICG Europe Mid-Market Fund II SCSp and €150 million to a customized co-investment program. This equates to approximately $328 million total, at the current exchange rate.
In the state’s real estate portfolio, Treasurer Russell announced his decision to commit $125 million to Penzance DC Real Estate Fund III LP, $200 million to Stonepeak Infrastructure Fund V LP, and $125 million to Homestead Capital USA Farmland Fund IV, LP.
These investment decisions were based on input and feedback the Treasurer received during the November 2023 meeting of the IAC.
“I’m pleased to kick off 2024 with this slate of investment commitments,” said Treasurer Russell. “These European opportunities, in particular, represent prudent diversification of our private credit portfolio. I’m grateful to the IAC for their collaboration and input in these decisions.”
Also in Wednesday’s meeting, the IAC received several updates from the Treasurer’s investment team. These included an update on Global Equity positioning and outlook, the currency overlay strategy for the Public Markets, a review of the Short-Term Investment Fund (STIF), and a presentation of the CRPTF rebalancing process.
Additionally, Principal Investment Officers Mark Evans and Denise Stake provided an overview of the recommended pacing plans for the Private Equity, Private Credit, Real Estate, and Infrastructure/Natural Resource Asset Classes.
The IAC is comprised of volunteer members who are responsible for providing advice to the State Treasurer on performance benchmarks, investment and shareholder policy, and institutional investment procedures for the CRPTF. It includes both ex-officio members and members who are appointed by the Governor and legislative leaders. To learn more about the IAC, visit portal.ct.gov/OTT/About-the-Treasury/Advisory-Council.
***
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and nine state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
*** END ***
_______________
Cheryl D. Rice
Press Secretary
State of Connecticut – Office of the Treasurer
165 Capitol Ave. Hartford, CT 06106
Rice, Cheryl
FOR IMMEDIATE RELEASE // MARCH 13, 2024
TREASURER ERICK RUSSELL AND INVESTMENT ADVISORY COUNCIL
REVIEW INVESTMENT FUND OPPORTUNITIES IN MARCH MEETING
HARTFORD, Connecticut – On Wednesday, Connecticut’s Investment Advisory Council (IAC) met with State Treasurer Erick Russell to review two upcoming investment opportunities for the Connecticut Retirement Plans and Trust Funds (CRPTF) portfolio. No new investment commitments were announced in the meeting.
*** END ***
_______________
Cheryl D. Rice
Press Secretary
State of Connecticut – Office of the Treasurer
165 Capitol Ave. Hartford, CT 06106
Rice, Cheryl
FOR IMMEDIATE RELEASE // MAY 8, 2024
TREASURER ERICK RUSSELL ANNOUNCES $450 MILLION IN INVESTMENT COMMITMENTS AT MAY INVESTMENT ADVISORY COUNCIL MEETING
HARTFORD, Connecticut – On Wednesday, State Treasurer Erick Russell met with Connecticut’s Investment Advisory Council (IAC) at the State Office Building in Hartford, where he announced two commitments to the Connecticut Retirement Plans and Trust Funds (CRPTF).
He committed $200 million to Axium Infrastructure North America II, L.P., Axium Infrastructure Canada II INTL L.P., and AxInfra US II L.P. Additionally, he committed $250 million to Carlyle Realty Partners X, L.P.
The Council also heard from Meketa, General Investment Consultant, who joined Chief Investment Officer Ted Wright and Investment Officer Robert Scully to report on performance and provide an update on the capital market environment.
Principal Investment Officer Nishant Upadhyay and Investment Officer Jorge Portugal presented a Fixed Income structural review. Principal Investment Officer Denise Stake, Senior Investment Officer Olivia Wall, and Investment Officer Philip Conner provided a structure review of Real Estate.
Several investment opportunities were presented at Wednesday’s meeting. Principal Investment Officer Mark Evans and Investment Officer Carmen Melaragno presented Clearlake Capital Partners VIII, L.P., Stellex Capital Partners III, L.P. and Stellex Capital Partners III Co-Investment, which are private investment fund opportunities.
Evans joined Investment Officer Kan Zuo to present Oaktree Opportunities Fund XII L.P., a private credit opportunity, and Stake, Wall, and Conner presented Artemis Real Estate Partners Income & Growth Fund II L.P. and Sterling Value Add Partners IV L.P., both real estate fund opportunities.
“As we continue to look for new ways to strengthen the portfolio and position our pension funds for long-term success, these in-depth reviews are an essential tool in evaluating substantial new investment opportunities,” said Treasurer Russell. “I deeply appreciate the time and effort that goes into these meetings, and I want to express my gratitude to the IAC members as well as staff and consultants who support this necessary work.”
The IAC shares responsibility for Connecticut’s investment strategy and performance. Its members are appointed by unions representing teachers and state workers, as well as by legislative leaders and the Governor. The IAC 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.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
*** END ***
_______________
Cheryl D. Rice
Press Secretary
State of Connecticut – Office of the Treasurer
165 Capitol Ave. Hartford, CT 06106
Rice, Cheryl
FOR IMMEDIATE RELEASE // JULY 10, 2024
TREASURER ERICK RUSSELL ANNOUNCES MORE THAN
$1 BILLION IN INVESTMENT COMMITMENTS AT
JULY INVESTMENT ADVISORY COUNCIL MEETING
HARTFORD, Connecticut – Connecticut’s Investment Advisory Council (IAC) convened at the State Office Building in Hartford on Wednesday, where State Treasurer Erick Russell announced investment commitments of more than $1 billion across the private equity, private credit, and real estate portfolios of the Connecticut Retirement Plans and Trust Funds (CRPTF). These commitments followed feedback the Treasurer received at the May meeting of the IAC.
Rice, Cheryl
FOR IMMEDIATE RELEASE // DECEMBER 4, 2024
TREASURER ERICK RUSSELL ANNOUNCES MORE THAN $1.6 BILLION IN INVESTMENT COMMITMENTS AT DECEMBER INVESTMENT ADVISORY COUNCIL MEETING
HARTFORD, Connecticut – At this month’s meeting of Connecticut’s Investment Advisory Council (IAC), which convened at the State Office Building in Hartford on Wednesday, State Treasurer Erick Russell announced investment commitments totaling more than $1.6 billion.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
*** END ***
_______________
Cheryl D. Rice
Communications Manager/Press Secretary
Rice, Cheryl
FOR IMMEDIATE RELEASE // DECEMBER 9, 2024
TREASURER ERICK RUSSELL HIGHLIGHTS RATING UPGRADE AT CHET COLLEGE SAVINGS PLAN MEETING
HARTFORD, Connecticut – Connecticut Treasurer Erick Russell announced that the Connecticut Higher Education Trust (CHET) 529 college savings plan, of which he serves as trustee, has earned a rating upgrade from Morningstar, an investment research company that reviews, rates, and grades 529 plans throughout the United States on an annual basis.
CHET Direct, the managed investment option with over 170,000 accountholders, was upgraded from Bronze to Silver, the second-highest rating possible. Only five plans across the nation now hold a higher rating. The announcement was made during the annual meeting of the CHET Advisory Committee last week.
“Saving with a CHET account can make college and other education expenses easier to navigate,” said Treasurer Russell. “Helping families prepare and save for the future is a fundamental responsibility and a tremendous point of pride for my office. I’m glad to see that commitment reflected in this upgrade. I hope this news encourages more Connecticut families to check CHET out and open an account for the young people in their lives. With strong investment performance and starting early, even small contributions can generate big returns over time.”
Morningstar evaluates a range of criteria including investment performance, oversight, and staff acumen. Comments in its review of Connecticut’s plans cited strong personnel at Fidelity, the third-party administrator for CHET, and rigorous oversight within the Office of the Treasurer, including veteran investment professionals.
“Morningstar’s decision to upgrade the CHET Direct plan to a Silver rating is a testament to the hard work our teams have done to help even more students in Connecticut and beyond save for their education,” said Jared Newman, director of 529 college savings at Fidelity Investments. “With the cost of college on the rise, we’re proud to continue working alongside CHET and Treasurer Russell to help families across the state achieve their dreams.”
The ratings are an important validator for 529 plans and a measure of overall program management. CHET Direct plans offer investors a variety of strategies based on risk, age, and investment goals. There is no annual fee, and no minimum amount required to open a CHET account.
Funds used for education expenses like tuition, room and board, books, and computer equipment are free from both federal and state taxes. Contributions to CHET accounts are tax deductible for Connecticut income tax purposes up to $5,000 per year for a single filer or $10,000 for those filing jointly.
To open an account or learn more, visit AboutCHET.com.
Rice, Cheryl
FOR IMMEDIATE RELEASE // DECEMBER 11, 2024
TREASURER RUSSELL ANNOUNCES SUCCESSFUL
$1.4 BILLION STATE TRANSPORTATION BOND SALE
HARTFORD, Connecticut – Today, Connecticut State Treasurer Erick Russell announced the results of a successful $1.4 billion State of Connecticut Special Tax Obligation (STO) Transportation Infrastructure bond sale.
Rice, Cheryl
FOR IMMEDIATE RELEASE // JANUARY 7, 2025
HARTFORD, Connecticut – Connecticut Treasurer Erick Russell announced the early elimination of $394 million in transportation-related debt on Tuesday. The move, made possible by recent legislative changes pushed by Treasurer Russell in collaboration with Governor Ned Lamont’s administration, will save taxpayers $682.1 million over the next decade.
“The early payoff of this transportation debt is a continuation of Connecticut’s commitment to sound long-term financial planning,” said Treasurer Russell. “This is a win-win outcome that relieves the burden of debt on taxpayers and frees up funding to invest in future transportation initiatives without compromising project readiness. By strategically using excess balance in the Special Transportation Fund to eliminate long-term debt, we will achieve savings of $45.1 million in the current year and $63.5 million annually from 2026 to 2035. These savings will allow our state to continue to fund critical transportation work that directly supports jobs in construction, engineering, and the trades, while strengthening our local economy.”
In recent years, the amount held in reserve in the Special Transportation Fund (STF) had grown significantly. Legislation proposed by Treasurer Russell and the Administration would use funds over 18% of operating expenses to pay down long-term debt. That provision was adopted by the legislature as a one-time maneuver for this fiscal year. Utilizing excess reserves to remove debt from the balance sheet improves the long-term health of the STF by lowering or removing future principal and interest payments on borrowing, known as debt service.
Accordingly, the Office of the Treasurer was able to redeem $394 million of Special Tax Obligation (STO) Transportation Infrastructure bonds that were eligible for pre-payment. In June 2025, an additional $140 million of bonds will become eligible for pre-payment and will be paid off for a total of $534 million in debt reduction. In the most recent fiscal year, the STF took in approximately $2.3 billion in revenue and expended $2.1 billion. After the redemption, $441 million will remain as the cumulative balance in the STF, or 18% of annual expenditures.
Earlier this month, Treasurer Russell completed the first STO bond sale under a new indenture, the legal terms between Connecticut and its bondholders. The former terms had not been updated in over forty years. As a result of those modernization efforts, Treasurer Russell estimates that by the end of 2025, an additional $200 million from bond reserves will also be available for the early payoff of STO Bonds, bringing the estimated total reduction in debt service to over $1 billion over the next 10 years.
More information on Connecticut’s bonding programs is available at www.buyctbonds.com.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the only Black elected state treasurer in the country. To learn more, visit portal.ct.gov/ott.
*** END ***
_______________
Cheryl D. Rice
Communications Manager/Press Secretary
Rice, Cheryl
FOR IMMEDIATE RELEASE // JANUARY 23, 2025
TREASURER ERICK RUSSELL ANNOUNCES NEARLY $2 BILLION IN INVESTMENT COMMITMENTS AT FIRST INVESTMENT ADVISORY COUNCIL MEETING OF 2025
HARTFORD, Connecticut – Connecticut’s Investment Advisory Council (IAC) convened on Wednesday morning at the State Office Building in Hartford for its first meeting of 2025. At the meeting, State Treasurer Erick Russell announced investment commitments totaling $1.95 billion.
These investments included allotments in the private infrastructure and natural resources, private real estate, private equity, and private credit portfolios of the Connecticut Retirement Plans and Trust Funds (CRPTF), which includes the pension funds for retired teachers and state workers.
“The IAC plays a vital role in our strategic asset allocation and in evaluating potential investment opportunities,” said Treasurer Russell. “The investments we announced today continue to move us toward those asset allocation targets and ultimately toward our overall goal of maximizing the returns we earn for Connecticut pensioners.”
In private infrastructure and natural resources, Treasurer Russell committed up to $150 million to Ridgewood Water & Strategic Infrastructure Fund II, L.P.
In private real estate, he announced a commitment of up to $150 million to Mesirow Financial Real Estate Value Fund V, L.P.
In the private equity portfolio, he committed up to $900 million to HarbourVest CT Co-Investment Fund, L.P., Tranche 2.
In private credit, he committed up to $750 million to HarbourVest CT Private Debt Partnership L.P.
These commitments followed feedback the Treasurer received at the December meeting of the IAC.
Four potential investments were reviewed for consideration at the meeting: Levine Leichtman Capital Partners VII, L.P.; Strategic Value Special Situations Fund VI, L.P. (private investment opportunities); BIG Real Estate Fund III, L.P. GCM/CT; and Real Estate Small and Middle Market Fund, L.P. (real estate opportunities).
Recommended pacing plans for the Private Equity, Private Credit, Real Estate, and Infrastructure/Natural Resources asset classes were also reviewed at Wednesday’s meeting.
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. The IAC 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.
Rice, Cheryl
FOR IMMEDIATE RELEASE // JANUARY 31, 2025
FEBRUARY 1, NATIONAL UNCLAIMED PROPERTY DAY
HARTFORD, Connecticut – The fifth annual “National Unclaimed Property Day” will be observed on Saturday, February 1. This is a day when people around the country are reminded to see if they have money waiting for them.
Rice, Cheryl
FOR IMMEDIATE RELEASE // MARCH 10, 2025
TREASURER ERICK RUSSELL ANNOUNCES CHET DREAM BIG! COMPETITION WINNERS
HARTFORD, Connecticut – State Treasurer Erick Russell, Trustee of the Connecticut Higher Education Trust (CHET), today announced the winners of the 2024 CHET Dream Big! Competition.
Three students were awarded $20,000 prizes and 24 students were awarded $5,000 prizes. An additional 239 students will be awarded $500 prizes this spring. Over 3,500 entries were submitted.
Treasurer Russell also announced that ten schools will receive a $5,000 technology prize to help provide new items like tablets, smartboards, and small electronics for classrooms. Each school in Connecticut represented by at least one entry in the Dream Big! Competition was eligible for a random drawing for these prizes.
“The goal of CHET and the Dream Big! Competition is to help create opportunities for Connecticut’s children that are every bit as big as their dreams,” said Treasurer Rusell. “Once again, students from across the state demonstrated an incredible sense of purpose, passion and creativity through their submissions. I applaud every student who took the time to participate and voice their aspirations, which will undoubtedly become reality. I look forward to seeing all they will accomplish in the years to come.
“I also want to congratulate the ten schools that won technology prizes,” he continued. “We are so thankful for your partnership and encouragement of students to dream big.”
The 2024 Competition, which began Aug. 1, 2024, and ended on Nov. 4, 2024, was open to all Connecticut residents in grades K-12. As part of the competition, younger students were asked to focus on lessons they have learned and their dreams for the future, and older students were asked about an experience or person that has impacted them and how that will influence their future goals. Answers were provided in the form of short essays, drawings, or videos. This year’s winners shared dreams of careers in the arts, science, law enforcement, medicine, and public policy.
Grand prize winner in the kindergarten through fourth grade group, Evelyn H. of North Stonington, submitted a video showcasing her bedroom “vet clinic.” Dressed in a vet costume, she walked viewers through her stuffed and real dog patients, detailing their maladies and how she would fix them. “I love being able to learn about all the infections, and especially how to fix them. I hope to see you and your pets at my clinic someday,” she said.
First prize winner in the fifth through eighth grade group, Aarav P. of Stamford, wrote about overcoming self-doubt when trying out for a team. He faced his anxiety with his new mantra, “not today, fear.” The experience taught him that even when something felt impossible, it’s always worth it to be brave and try.
First prize winner in the ninth through twelfth grade group, Raymond L. of Watertown, submitted a video talking about his experience as a student helper for the middle school and children’s ministries at his church. This volunteer work has helped him establish his goal to be an educator in the public school system and highlighted his passion for everyone to have an equal and fair opportunity to be the best they can be in the classroom.
Since 2013, the Dream Big! Competition has awarded over $4.5 million to Connecticut students to help pay for future education expenses.
For more information about the CHET Dream Big! Competition, including the rest of this year’s winners, go to www.chetdreambig.com.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
About CHET
The Connecticut Higher Education Trust (CHET) direct-sold college savings plan was established in 1997 and has grown to more than $4.2 billion in assets and 161,000 accounts. Over $2.1 billion has been withdrawn from CHET accounts to help more than 57,000 students pay for college expenses. The State of Connecticut offers CHET to help families save for future higher education costs. Funds deposited into a CHET account have tax advantages and can be used at accredited colleges and universities across the country, including vocational and technical schools, and some colleges abroad. Connecticut residents are allowed to deduct 529 contributions from their state income taxes – up to $5,000 for an individual or up to $10,000 for a married couple filing jointly. Investment earnings are exempt from state and federal taxes if used for qualified educational expenses.
For more information, visit AboutCHET.com. Find us on Facebook (facebook.com/CHET529), follow us on Twitter (@CHET529) or on Instagram (@CHET529).
About Fidelity Investments
Fidelity’s mission is to strengthen the financial well-being of our customers and deliver better outcomes for the clients and businesses we serve. Fidelity’s strength comes from the scale of our diversified, market-leading financial services businesses that serve individuals, families, employers, wealth management firms, and institutions. With assets under administration of $15.1 trillion, including discretionary assets of $5.9 trillion as of December 31, 2024, we focus on meeting the unique needs of a broad and growing customer base. Privately held for 78 years, Fidelity employs more than 77,000 associates across the United States, Ireland, and India. For more information about Fidelity Investments, visit https://www.fidelity.com/about-fidelity/our-company.
The Connecticut Higher Education Trust (CHET) 529 College Savings Plan - Direct Plan is offered by the Treasurer of the state of Connecticut and managed by Fidelity Investments. If you or the designated beneficiary is not a Connecticut resident, you may want to consider, before investing, whether your state or the beneficiary's home state offers its residents a plan with alternate state tax advantages or other state benefits such as financial aid, scholarship funds and protection from creditors.
Please carefully consider the plan's investment objectives, risks, charges, and expenses before investing. For this and other information on any 529 college savings plan managed by Fidelity, contact Fidelity for a free Fact Kit or view one online. Read it carefully before you invest or send money.
Units of the portfolios are municipal securities and may be subject to market volatility and fluctuation.
The Fidelity Investments and pyramid design logo is a registered service mark of FMR LLC.
Fidelity Brokerage Services LLC, Member NYSE, SIPC
900 Salem Street, Smithfield, RI 02917
Fidelity Distributors Company LLC
900 Salem Street, Smithfield, RI 02917
National Financial Services LLC, Member NYSE, SIPC
245 Summer Street, Boston, MA 02211
1193910.1.0
© 2025 FMR LLC. All rights reserved.
*** END ***
Media Contacts:
Office of the Treasurer: Brett Cody
brett...@ct.gov | (959) 529-2468
Dream Big!: Amanda Savio
asa...@mintz-hoke.com | (860) 543-3865
Rice, Cheryl
FOR IMMEDIATE RELEASE // MARCH 12, 2025
TREASURER ERICK RUSSELL HOSTS MARCH INVESTMENT ADVISORY COUNCIL MEETING, ANNOUNCES $900 MILLION IN INVESTMENT COMMITMENTS
HARTFORD, Connecticut – Connecticut’s Investment Advisory Council (IAC) held its March meeting at the State Office Building in Hartford on Wednesday morning. In the meeting, State Treasurer Erick Russell announced investment commitments totaling $900 million.
The commitments were allocated to the private real estate and private equity portfolios of the Connecticut Retirement Plans and Trust Funds (CRPTF), which include the pension funds for retired teachers and state workers.
“There’s no denying that we’re in a moment of great uncertainty in the investment space,” said Treasurer Russell. “The IAC is comprised of dedicated members who bring an incredible depth of experience and insight, and I’m confident that we will navigate through this period of volatility. I’m grateful for their level-headed, pragmatic input as we evaluate new investment opportunities.”
In private real estate, Treasurer Russell committed up to $200 million to BIG Real Estate Fund III, L.P., and up to $250 million to GCM/CRPTF Real Estate Small and Middle Market Fund L.P.
In the private equity portfolio, he committed up to $200 million to Levine Leichtman Capital Partners VII L.P., and up to $250 million to Strategic Value Special Situations Fund VI, L.P.
These commitments followed feedback the Treasurer received at the January meeting of the IAC.
Several potential investments were reviewed for consideration at the meeting. These included Avance Investment Partners II, L.P. and Hg Saturn 4 A L.P. (private investment opportunities) and Artemis Real Estate Partners Healthcare Fund III, L.P. (a real estate opportunity).
Chief Investment Officer Ted Wright also presented a quarterly performance review of CRPTF investments during the meeting.
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.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
Rice, Cheryl
FOR IMMEDIATE RELEASE // APRIL 24, 2025
TREASURER RUSSELL ANNOUNCES SUCCESSFUL
$1.4 BILLION GENERAL OBLIGATION BOND SALE
FOLLOWING INVESTOR ROAD SHOW WITH GOVERNOR LAMONT
HARTFORD, Connecticut – Today, Connecticut State Treasurer Erick Russell announced the results of a successful $1.4 billion State of Connecticut General Obligation (GO) Bond offering. The bonds will fund a variety of capital improvements and grant programs across Connecticut and will refinance existing debt for savings.
“The GO Bond program provides for strategic infrastructure investment in Connecticut,” Treasurer Russell said. “From school construction to affordable housing to capital projects across the state, these funds will help strengthen communities and create jobs. With the instability we are seeing in the economy on a national level, this is a solid investment we can all feel good about.”
The $800 million new money bond offering consisted of $500 million of 2025 Series A Tax-Exempt Bonds and $300 million 2025 Series A Taxable Bonds. In addition, $598.6 million of 2025 Series B Tax-Exempt bonds were sold to refund three series of outstanding callable GO bonds for total savings of approximately $39.5 million over the next 10 years.
Last week, Treasurer Russell was joined by Governor Ned Lamont and Office of Policy and Management Secretary Jeffrey Beckham in an “Investor Road Show,” with presentations to key institutional and retail investors in Boston, New York, and Hartford. They highlighted the State’s continued fiscal discipline, improved credit ratings, and strong economic fundamentals.
“We’re proud to show investors the tangible progress Connecticut has made,” continued Treasurer Russell. “From six consecutive years of budget surpluses to a fully funded Rainy Day Fund and sustained pension reform, Connecticut has become a national model of responsible governance and long-term planning.”
“Bond sales have enabled our state to make vital investments in our future, including housing, schools, and other necessary infrastructure improvements. While honoring our promises to bondholders and building on the success of our budgetary guardrails, we have been able to turn our fiscal house around. We look forward to staying the course and continuing that progress in our next budget..”
Key highlights of their Road Show presentation included:
• A record-high $4.1 billion Budget Reserve Fund, now at the statutory maximum of 18% of expenditures
• More than $8.6 billion in supplemental pension contributions made since FY2020
• Six consecutive years of General Fund operating surpluses with a projected seventh in FY2025
• Improved pension funded ratios and a conservative debt portfolio with 78% of GO principal set to mature within 10 years
• Upgrades from all four major credit rating agencies since 2019
• A resilient economy, bolstered by one of the highest per capita incomes in the nation, a highly educated workforce, and major corporate presence.
Retail Order Period
As is the State’s custom, Treasurer Russell gave individual (“retail”) investors priority on the bonds during a dedicated one-day, retail-only order period on Tuesday, April 22, which helped generate retail orders totaling $755 million. This includes $292 million from Connecticut investors.
Orders and Interest Cost
Despite volatility in the municipal bond market, the State attracted more than $9 billion in total orders from both retail and institutional investors, exceeding by nearly seven times the amount of bonds being offered.
This significant investor response produced a 3.59% borrowing cost on the 20-year 2025 Series A and B Bonds and a 4.93% borrowing cost on the ten-year Taxable 2025 Series A Bonds. Lower borrowing costs save taxpayers money in the long-term.
The 2025 Series A and 2025 Taxable Series A bonds will fund:
• $ 425.0 million for School Construction
• $ 123.3 million for Build for Connecticut Housing Project
• $ 72.0 million for Affordable Housing
• $ 44.9 million for Grants for improvements to ports, harbors, and marinas
• $ 31.7 million for Community Conservation Development
• $ 28.0 million for Improvements at the XL Center in Hartford
• $ 19.9 million for Improvements to State- owned facilities
• $ 15.5 million for Economic and Community Development
• $ 14.0 million for Technology enhancements for various state agencies
• $ 13.0 million for University of Connecticut Health Center
• $ 8.5 million for Strategic Defense Investment Program
• $ 2.3 million for Grants-in- Aid to Municipalities for qualified infrastructure projects
• $ 1.5 million for Preservation of Agricultural Land
Summary of GO Credit Ratings
Prior to the bond sale, all four credit rating agencies affirmed the State’s GO credit ratings.
• Moody’s Investors Service affirmed its “Aa3” rating, with a Positive Outlook;
• S&P Global Ratings affirmed its “AA-” rating, with a Stable Outlook;
• Fitch Ratings affirmed its “AA-” rating, with a Positive Outlook;
• and Kroll Bond Ratings affirmed its “AA+” credit rating with a Stable Outlook.
Barclays Capital Markets and Ramirez & Co., Inc. co-led the bond underwriting syndicate that sold the bonds, which are scheduled to close on May 7, 2025.
More information on the State’s bonding program is available at www.buyctbonds.comings
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
*** END ***
|
|
Cheryl D. Rice (she/her) Communications Mgr/Press Secretary
Mobile: (860) 888-9387 Web:
portal.ct.gov/ott 165 Capitol Avenue, 2nd Floor Hartford, CT 06106 |
Rice, Cheryl
FOR IMMEDIATE RELEASE // APRIL 24, 2025
TREASURER RUSSELL ANNOUNCES SUCCESSFUL
$1.4 BILLION GENERAL OBLIGATION BOND SALE
FOLLOWING INVESTOR ROAD SHOW WITH GOVERNOR LAMONT
HARTFORD, Connecticut – Today, Connecticut State Treasurer Erick Russell announced the results of a successful $1.4 billion State of Connecticut General Obligation (GO) Bond offering. The bonds will fund a variety of capital improvements and grant programs across Connecticut and will refinance existing debt for savings.
“The GO Bond program provides for strategic infrastructure investment in Connecticut,” Treasurer Russell said. “From school construction to affordable housing to capital projects across the state, these funds will help strengthen communities and create jobs. With the instability we are seeing in the economy on a national level, this is a solid investment we can all feel good about.”
The $800 million new money bond offering consisted of $500 million of 2025 Series A Tax-Exempt Bonds and $300 million 2025 Series A Taxable Bonds. In addition, $598.6 million of 2025 Series B Tax-Exempt bonds were sold to refund three series of outstanding callable GO bonds for total savings of approximately $39.5 million over the next 10 years.
Last week, Treasurer Russell was joined by Governor Ned Lamont and Office of Policy and Management Secretary Jeffrey Beckham in an “Investor Road Show,” with presentations to key institutional and retail investors in Boston, New York, and Hartford. They highlighted the State’s continued fiscal discipline, improved credit ratings, and strong economic fundamentals.
“We’re proud to show investors the tangible progress Connecticut has made,” continued Treasurer Russell. “From six consecutive years of budget surpluses to a fully funded Rainy Day Fund and sustained pension reform, Connecticut has become a national model of responsible governance and long-term planning.”
“Bond sales have enabled our state to make vital investments in our future, including housing, schools, and other necessary infrastructure improvements,” said Governor Lamont. “While honoring our promises to bondholders and building on the success of our budgetary guardrails, we have been able to turn our fiscal house around. We look forward to staying the course and continuing that progress in our next budget..”
Rice, Cheryl
FOR IMMEDIATE RELEASE // APRIL 29, 2025
TREASURER RUSSELL, MAYOR ARULAMPALAM, TREASURER SIERRA ANNOUNCE $7.2 MILLION IN SAVINGS AFTER REFUNDING SALE OF CITY OF HARTFORD SPECIAL OBLIGATION REVENUE BONDS
HARTFORD, Connecticut – State Treasurer Erick Russell, Hartford Mayor Arunan Arulampalam and Hartford Treasurer Carmen Sierra today announced a successful $116.6 million refunding sale of City of Hartford State Contract Assistance bonds, resulting in $7.2 million in debt service savings for Connecticut taxpayers over the next ten years. The sale took place on April 24.
“This successful bond sale is a significant win for the City of Hartford and for all Connecticut taxpayers,” said Treasurer Russell. “I want to thank Mayor Arulampalam, Hartford Treasurer Sierra, and their staffs for their collaboration. Thanks to our strong partnership, we were able to efficiently bring a refunding bond sale to market for the second time since 2023.”
“Saving $7.2 million over the next decade for the State of Connecticut means we can continue to invest in Hartford’s future while keeping our fiscal house in order. I’m grateful to Treasurer Russell, Treasurer Sierra, and all the professionals whose hard work made this possible. Together, we are delivering real results for Hartford’s taxpayers and building a stronger, more sustainable city for everyone,” said Mayor Arulampalam.
“I am proud to have played a key part in the team that brought about the refunding of these bonds. Working collaboratively and in partnership with the State Treasurer and the Mayor, we will save over $7.2 million for state taxpayers over the next 10 years thanks to this transaction,” said Treasurer Sierra. “This type of sound fiscal policy is what I fight for every day, as the people of Hartford’s Treasurer.”
This is the second sale of City of Hartford bonds under the contract assistance agreement Hartford entered into with the state in 2018. This sale of tax-exempt City of Hartford Special Obligation (State Contract Assistance) bonds will refinance all or a portion of four series of higher-interest City of Hartford general obligation bonds.
Hartford and the state collaborated to identify bonds that could be refunded for savings. By refunding existing debt at lower rates, the state’s fixed costs will be lower, generating savings for taxpayers for years to come.
Orders and Interest Cost
Orders from investors on the bond offering totaled $467 million, exceeding the amount of bonds offered by four times and contributing to the 3.69% borrowing cost on the ten-year bonds.
Prior to the sale, both Moody’s Investors Service and S&P Global Ratings assigned their ratings for these bonds. Moody’s rating is “Aa3” with a Positive Outlook and S&P's is “AA-” with a Stable Outlook. These ratings mirror the State of Connecticut’s ratings, because the security for the bonds is the contract assistance payments made by the State to pay the debt service on the bonds.
“The Hartford bonds were originally scheduled to price the week of April 28,” said Treasurer Russell, “but after the resounding success of the State’s GO bond sale on April 23, the transaction team pivoted quickly to accelerate Hartford’s sale to take advantage of investor interest in the State’s credit.”
Raymond James and Siebert Williams Shank co-led the bond underwriting syndicate that sold the bonds, which are scheduled to close on May 21, 2025.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
*** END ***
Rice, Cheryl
FOR IMMEDIATE RELEASE // MAY 14, 2025
TREASURER RUSSELL ANNOUNCES MORE THAN $1.17 BILLION IN INVESTMENT COMMITMENTS AT MAY INVESTMENT ADVISORY COUNCIL MEETING
HARTFORD, Connecticut – On Wednesday morning, Connecticut’s Investment Advisory Council (IAC) convened at the State Office Building in Hartford. In the meeting, State Treasurer Erick Russell announced $675 million in new investment commitments and more than $500 million in increases to current holdings.
“In this volatile market, it’s important that we balance investments in promising new opportunities while shoring up investments with existing, high-conviction managers,” said Treasurer Russell. “We have determined that this is the right time to increase commitments with several established funds based on a sustained track record of strong performance.”
In private real estate, Treasurer Russell committed up to $200 million to Artemis Real Estate Partners Healthcare Fund III, L.P.
In private equity, he committed up to $175 million to Avance Investment Partners II, L.P., and up to $300 million to HG Saturn 4 A, L.P.
Additionally, Treasurer Russell increased existing commitments to several funds in the private equity and private credit portfolios. In private equity, he announced increased commitments of:
-
Up to $25 million to each of Leeds VIII, L.P. and Leeds Equity Partners Co-Invest I, L.P.;
-
Up to $100 million to K6 Private Investors LP;
-
Up to $37.5 million to Stellex Capital Partners III LP and $12.5 million to Stellex III Co-Invest LP; and
-
Up to $100 million to Hollyport Secondary Opportunities IX LP.
In private credit, Treasurer Russell announced an increased commitment to ICG – CRPTF Global Multi Strategy I SCSp. This will be comprised of up to €135 million to ICG Europe Fund IX SCSp and up to €70 million to Connecticut’s ICG Co-Investment program.
These commitments followed presentations and feedback the Treasurer received at the March meeting of the IAC.
Several potential investments were reviewed for consideration at the meeting. These included Integrum Capital Partners II LP (a private investment opportunity), Anchorage Credit Opportunities IX, L.P. and Anchorage Credit Opportunities IX Co-Investment, L.P. (a private credit opportunity), and Sterling United Properties I CF, L.P. and TA Realty Core Property Fund LP (two real estate opportunities).
“The deep expertise represented on our Investment Advisory Council plays a critical role in the strong performance of our investment portfolio, and I thank the members for their sound, pragmatic analysis in these meetings,” said Treasurer Russell.
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.
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
*** END ***
Rice, Cheryl
FOR IMMEDIATE RELEASE // MAY 15, 2025
TREASURER RUSSELL ANNOUNCES LAUNCH OF “CT BIG MATCH,” A STREAMLINED SYSTEM THAT RETURNS
UNCLAIMED PROPERTY FASTER THAN EVER
HARTFORD, Connecticut – Today, Treasurer Russell announces the launch of CT Big Match, a streamlining initiative designed to return unclaimed property to Connecticut residents quicker and easier than ever before.
“We anticipate that about $2.5 million in unclaimed property will be returned directly to more than 15,000 Connecticut residents through the CT Big Match program in the coming months, without recipients even having to file a claim,” said Treasurer Russell. “Our goal is to get this money back to its rightful owners, and this new system is greatly simplifying the process. I’m proud of our Unclaimed Property division for launching CT Big Match, and I thank them for all their hard work.”
Unclaimed property includes assets such as bank accounts, insurance policies, utility deposits, and uncashed checks. With CT Big Match, eligible residents will not need to file a claim for this money if their identity can be matched and confirmed in our system.
How CT Big Match Works:
1. Automatic Matching: If you are the sole owner of unclaimed property worth less than $2,500, you may be eligible for CT Big Match.
2. Notification: If we can match you and your address with our records of abandoned property, you will receive a letter in the mail informing you of the match and how much money you can expect to receive.
3. Checks Go Out: About 6-8 weeks after receiving the notification, your check will arrive in the mail.
“We’re sending letters ahead of the checks because we realize that people will be reasonably suspicious of a check just showing up in the mail,” continued Treasurer Russell. “We want everyone to know that this is a legitimate program, and the money they receive from Connecticut’s Unclaimed Property program is theirs.”
CT Big Match is a continuation of the streamlining efforts that began last year with the launch of FastTrack. FastTrack uses similar matching technology to efficiently approve claims under $2,500 with a sole owner. Since it began, more than 22,000 Connecticut residents have been reunited with more than $3 million of abandoned property through FastTrack.
“Whether you qualify for CT Big Match or not, we encourage everyone to check CTBigList.gov to see if they have unclaimed property,” said Treasurer Russell. “In Fiscal Year 2024, we returned $82 million to Connecticut residents, and we want to return even more this year. Searching CTBigList.gov for property and filing a claim is free and easy to do, and everyone should take a few minutes to see if they have money waiting for them.”
For more information, or to search for unclaimed property, visit CTBigList.gov.
About the Office of the Treasurer
Rice, Cheryl
FOR IMMEDIATE RELEASE // JULY 9, 2025
TREASURER RUSSELL ANNOUNCES MORE THAN $1.17 BILLION IN INVESTMENT COMMITMENTS AT MAY INVESTMENT ADVISORY COUNCIL MEETING
HARTFORD, Connecticut – On Wednesday morning, State Treasurer Erick Russell hosted the July meeting of Connecticut’s Investment Advisory Council (IAC), which convened at the State Office Building in Hartford. In that meeting, Treasurer Russell announced $775 million in new investment commitments for the Connecticut Retirement Plans and Trust Funds (CRPTF).
“The foundation of our investment decisions, and ultimately our long-term investment success, is our strategic asset allocation,” said Treasurer Russell. “By thoughtfully calibrating our portfolio across asset classes, including these investments we’re announcing today, we’re positioning the CRPTF to weather market fluctuations and capture growth over time.”
In private real estate, Treasurer Russell committed up to $150 million to Sterling United Properties I CF, L.P., and $200 million to TA Realty Core Property Fund, L.P.
In private credit, he committed up to $175 million to Anchorage Credit Opportunities IX, L.P., and up to $75 million to Anchorage Credit Opportunities IX Co-Investment, L.P.
In private investment, Treasurer Russell announced a commitment of up to $175 million to Integrum Capital Partners II, L.P.
These commitments followed feedback provided to the Treasurer by the IAC at the May meeting.
Several potential investments were reviewed for consideration at the meeting. Presentations included Reverence Capital Partners PE Opportunities IV (Fund VIII) L.P. and Verdane Freya XII AB (private investment fund opportunities), Crescent CRPTF Private Credit L.P. (a private credit fund opportunity), and HarbourVest Infrastructure Income Partnership L.P. and Palistar Digital Infrastructure Fund III L.P. (both infrastructure fund opportunities).
Wednesday’s meeting also included a presentation on an update to the CRPTF’s Investment Policy Statement as well as strategic reviews of Global Fixed Income and Risk Mitigation.
“Our Investment Advisory Council brings exceptional insight and judgment to the table, and their support is a major driver of our portfolio’s strength,” said Treasurer Russell. “I’m grateful for their clear-eyed analysis as we navigate these critical investment decisions.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // AUGUST 7, 2025
DENISE STAKE PROMOTED TO DEPUTY CHIEF INVESTMENT OFFICER AT THE
STATE OF CONNECTICUT OFFICE OF THE TREASURER
Amit Aggarwal Named Principal Investment Officer, Real Assets
HARTFORD, Connecticut – State Treasurer Erick Russell announces today that Denise Stake has been promoted to the position of Deputy Chief Investment Officer for the state of Connecticut. In this role, Stake will help lead the overall investment strategy and administration of the Connecticut Retirement Plans and Trus Funds (CRPTF), which includes the pension funds for retired teachers and state workers.
Stake joined the Treasurer’s office in January 2022 as Principal Investment Officer, Real Assets. With 35 years of investment experience, she has held numerous key leadership positions in the industry, including Managing Director and Real Estate Portfolio Manager at Barings LLC and Director of Research at the National Council of Real Estate Investment Fiduciaries (NCREIF).
Stake holds a B.S. in Business Administration with a focus on Real Estate and Urban Economics, as well as an M.A. in Economics, both from the University of Connecticut. She serves on the Pension Real Estate Association (PREA) Foundation Board and has previously filled leadership roles in both PREA and NCREIF.
“Denise’s expertise in strategic investment management and her deep industry knowledge have made her an invaluable member of our investment team,” said Treasurer Russell. “I know her strong leadership will help to ensure the long-term financial health of the CRPTF.”
Amit Aggarwal has been named Principal Investment Officer, Real Assets, the role formerly held by Stake. Aggarwal most recently worked as Investment Officer, Real Estate, with the Los Angeles County Retirement Association (LACERA). In this position, he was a senior member of the team that managed LACERA’s real estate portfolio of approximately $4.1 billion in assets. He previously worked as an investment officer with the California Public Employees’ Retirement System (CalPERS) and as an analyst with the California State Board of Equalization.
Aggarwal earned a B.S. in Business Administration from Sonoma State University in California and an M.B.A. from the University of Illinois, Urbana Champaign.
“I’m also pleased to welcome Amit to our team. Attracting and retaining top talent is one of my primary goals as Treasurer, and Amit is a great example of the kind of investment professional we’re eager to bring on board,” continued Treasurer Russell. “Our pension fund management team has a well-deserved stellar reputation, and professionals like Amit will help us to build on that success as we continue to deliver positive investment returns for Connecticut.”
Rice, Cheryl
FOR IMMEDIATE RELEASE // AUGUST 11, 2025
JUNIOR ACHIEVEMENT, CONNECTICUT STATE TREASURER’S OFFICE, AND BANK OF AMERICA TO HOST
NATIONAL FINANCIAL AWARENESS DAY PANEL ON AUGUST 14
HARTFORD, Connecticut – Today, Junior Achievement of Southwest New England, the Office of the Connecticut State Treasurer, and Bank of America announced a special panel discussion in honor of National Financial Awareness Day, taking place on Thursday, August 14, 2025, at the JA office in Hartford.
This free, in-person event will bring together local leaders, educators, and students to explore key financial topics such as early money management, first-time financial decisions, Connecticut’s economic outlook, the rise of FinTech, and how to better prepare young people for long-term financial success.
Featured Panelists:
• The Honorable Erick Russell, Connecticut State Treasurer
• Joe Gianni, president, Bank of America Greater Hartford
• Akilah Franklin, Educator, Weaver High School
• Trinity and Cole, Junior Achievement Student Leaders
“Financial empowerment starts with education,” said Connecticut State Treasurer Erick Russell. “Events like this broaden access to financial tools and education for every young person in Connecticut and inspire the next generation to thrive.”
“Building financial knowledge early in life is critical to helping young people in our communities set and achieve their financial goals,” said Joe Gianni, president, Bank of America Greater Hartford. “In collaboration with our longtime partner, Junior Achievement, we look forward to hosting this panel discussion and continuing to help communities thrive by increasing access to financial education.”
“This panel represents a meaningful step in bringing together public, private, and education sector voices,” added Jeremy Race, President and CEO of Junior Achievement of Southwest New England. “Together, we’re working to ensure students are equipped to navigate their financial futures with confidence.”
The event will take place at Junior Achievement’s Hartford office, located at 70 Farmington Avenue, from 11:00 AM to 12:00 PM. Light refreshments will be provided. Space is limited, and advance registration is required. Please RSVP to Donna Koch at dk...@jaconn.org or register online.
Junior Achievement Media Contact:
Kate Tedford
Director of Philanthropy
p: 860-986-7487
Rice, Cheryl
FOR IMMEDIATE RELEASE // SEPTEMBER 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.
*** END ***
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and it leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.
Rice, Cheryl
FOR IMMEDIATE RELEASE // SEPTEMBER 19, 2025
TREASURER RUSSELL HOSTS FIRST MEETING OF THE EARLY CHILDHOOD EDUCATION ENDOWMENT ADVISORY BOARD
HARTFORD, Connecticut – The Office of the State Treasurer hosted the inaugural meeting of the Early Childhood Education Endowment Advisory Board today at the State Office Building in Hartford. By statute, State Treasurer Erick Russell is charged with administering, investing, and distributing the funds in the Endowment.
The Advisory Board was created under Public Act 25-93 to oversee and guide the implementation of this first-in-the-nation Endowment, a permanent fund designed to expand access to high-quality, affordable early care and education for Connecticut families. It was established with an initial $300 million transfer from the FY 2025 state budget surplus, which was invested under the direction of Treasurer Russell to ensure long-term sustainability.
Treasurer Russell presented the first actuarial report for the Endowment at the meeting and announced that the Endowment had already grown by 2.5% to $307.5 million.
“This Advisory Board brings together early childhood education professionals, legislators, and community leaders to ensure that every dollar of the endowment is invested in the future of our children,” said Treasurer Russell. “Connecticut is leading the nation by building a lasting, independent funding source for early childhood education, and it will benefit families and strengthen our workforce for generations.”
OEC Commissioner Beth Bye said, “This first meeting of the Early Childhood Education Endowment Advisory Board marks an important milestone in launching the Endowment to expand access to affordable child care through Early Start CT and Smart Start to Connecticut's families. Governor Lamont and legislative leaders, by passing the Endowment into law, have put Connecticut on a promising path to build a high-quality early care and education system that works for children and families, providers, and our state’s economy.”
OEC Deputy Commissioner Elena Trueworthy said, “We look forward to working as partners with the Office of the State Treasurer in the role as the fiduciary of the Early Childhood Education Endowment and administrator of the Advisory Board. Senator Ceci Maher and Representative Kate Farrar, serving as the legislative chairs of the Advisory Board, exemplified strong leadership, working with the Governor and OEC, to pass this Endowment into law.”
State Sen. Ceci Maher said, “This endowment represents an historic investment in the children of Connecticut and in future generations. It is our responsibility to ensure thoughtful use of the funds to aid families and providers and secure the infrastructure needed for Connecticut. With the endowment, we have an opportunity to enact generational change and positively impact children’s growth and development. The lifelong value of early childhood education will bear benefits for years to come, and we look forward to building a new childcare landscape for all.”
State Rep. Kate Farrar said, “Connecticut made a historic investment in early childhood education with the establishment of the Early Childhood Education Endowment this legislative session. Now, the first meeting of the Endowment Advisory Board begins its crucial role to ensure that endowment funds are invested effectively and responsibly. The Advisory Board will provide oversight and provide recommendations to meet the goals of the Endowment to expand affordable and accessible high-quality child care across our state and support the early childhood educator workforce. I look forward to working with the members of the Board to fulfill our commitment to our kids and build a strong foundation for the future for our families, educators, and economy.”
The Early Childhood Education Endowment will fund:
- Expanded opportunities that make early childhood care and education available at no cost to families enrolled in Early Start CT who earn up to $100,000 per year, and on a sliding scale of no more than 7% of income for families earning more than $100,000 per year beginning in FY 2028.
- Expanded access for infants and toddlers, with at least 35% of new spaces dedicated to this underserved population.
- Support for the childcare workforce, including educator wage parity, scholarships, and a new health insurance subsidy program.
- Quality improvement requirements to ensure strong educational outcomes and family engagement.
The ECE Endowment Advisory Board will meet quarterly and will host an annual public hearing prior to issuing its report to the General Assembly.
*** END ***
About the Office of the Treasurer
The Office of the Treasurer is charged with safeguarding Connecticut’s financial resources through prudent cash management and debt management, with the State Treasurer serving as principal fiduciary for six state pension and twelve state trust funds. Additionally, the Office enhances the state’s fiscal stability through programs promoting financial literacy and college savings, and leverages business partnerships to support the advancement of Connecticut’s social and policy priorities, including combating gun violence and protecting our environment. The Office of the Treasurer is led by State Treasurer Erick Russell, the first Black out LGBTQ person to win an election for statewide office in American history. To learn more, visit portal.ct.gov/ott.