RSIC reports multi‑year outperformance as it prepares SAA shift to raise private‑markets target

Brian Moore presented the commission with the plan’s performance through March 31, 2025, saying the staff has generated an annualized excess return of 166 basis points over the past three years—equating to roughly $2.2 billion of added value—and a current plan market value of $47.2 billion.

Moore highlighted a 10‑year annualized return of 7.02% versus a 6.36% policy benchmark and said the portfolio’s five‑year anniversary of the COVID trough produced an 11.65% return over that five‑year window. He credited implementation decisions—particularly fee‑sparing co‑investments in private equity—for a material share of recent excess returns, noting co‑investments represented two‑thirds of private equity returns in recent years despite comprising about 40% of the private equity portfolio.

Staff reported two policy‑notification points: private equity stood at 13.32% (above a 13% notification threshold) and total private markets exposure was approximately 31.44% (above a 30% notification threshold). Moore said the strategic asset allocation change effective July 1 will shift private equity target to 12% and increase the private‑markets target toward 40%, which staff expects will return exposures to compliance as targets update.

Presenters also discussed how the team proxies private infrastructure performance using a listed infrastructure benchmark (which can create noisy attribution) and described defensive positioning in bonds that weighed on relative results for a period leading to March 31 but that April market moves have since begun to normalize.

The commissioners asked for further education sessions on macro risks and debt service implications; staff agreed to prepare balanced briefings on potential allocation implications. The SAA transition and the delegated‑limit change approved the same day are both tools staff said will assist implementation going forward.