MONTPELIER, VT — Tom Golonka, Chair of the Vermont Pension Investment Commission (VPIC), announced today an investment return of 24.62% for the fiscal year ending June 30, 2021. Assets under management increased $1.14 billion during the fiscal year, net of all administrative and benefit payments.
Golonka stated that “the Commission is very pleased with these strong results, which will go a long way in funding pension liabilities in a manner that minimizes the cost to the taxpayers of the State of Vermont.”
Chief Investment Officer Eric Henry thanked his team and consultant RVK for their efforts in underwriting and streamlining the portfolio to maximize investment returns within acceptable levels of risk and liquidity. Henry added “we believe we have a balanced portfolio that is well positioned to capture upside returns while protecting against economic downturns.”
Treasurer Pearce, a VPIC member, indicated that “this is good news and will certainly strengthen the three statewide pension plans, but investment returns alone will not solve the unfunded pension liabilities. We must continue to look at structural changes to put the pensions on a sustainable, positive track.”
As of July 1, 2021 VPIC has been restructured so that Vermont can continue to build on these successes. Chairperson Golonka thanked the General Assembly for making the necessary statutory changes to codify recent VPIC governance and management practice improvements, adding “we expect these changes to support further improvements to the investment of pension plan assets.”