Rhode Island’s investments are managed by the Office of the General Treasurer under the direction of the State Investment Commission (SIC). Treasury’s investments team provides recommendations to the SIC and oversees the day-to-day monitoring of the portfolio.
The roles and responsibilities of all contributors in the management of the state’s portfolios are described in the Investment Policy Statements. The most recent investment policy statement for the defined benefit pension investments was approved in February 2014, and will be reviewed periodically. The investment policy statement for the defined-contribubtion plan was approved in July of 2012.
The goal of the Treasury and the SIC is to generate strong long-term returns on the state’s investments while minimizing risk. Strong investment returns are crucial to ensuring that the state can sustainably meet its financial obligations, and risk management is important to ensure that the state is able to withstand economic downturns.
Treasury and the SIC are continually monitoring the state’s investments, holding managers accountable, and making changes as necessary, with the goal of delivering strong performance and reduced risk.
Treasury monitors all outside mangers and consultants who participate in the administration of the state’s investments, while ensuring the highest standards for ethics, transparency and accountability are maintained by all parties.
The Rhode Island Treasury is committed to providing public disclosure of key operational and performance information across the state’s investment portfolio.
As of June 30, 2015, Rhode Island will only enter into contracts with fund managers who agree to public disclosure of performance data no less frequently than quarterly, management, performance and other investment-related expense data no less than annually, as well as all lock-up and liquidity requirements. Treasury will publish this information at regular intervals. You can download Treasury's Transparency in Government Agreement here. With Treasurer Magaziner's support, the "Transparent Treasury" policy he introduced in 2015 was codified into Rhode Island law in 2017.
All members of the State Investment Commission and the Treasury staff that support them are subject to the state’s Code of Ethics. Members of the State Investment Commission and Treasury staff are forbidden from profiting directly or indirectly by any investment transaction made by the SIC.
All investment managers must sign a pledge confirming that they are in compliance with SEC and MSRB political contribution requirements, and all hedge funds and private equity funds are required to submit to regular third-party audits.
Rhode Island has a policy banning the use of and payment to placement agents for Rhode Island investments. All fund managers seeking to be hired by the State Investment Commission must sign a pledge verifying that no placement agents were used in the solicitation of state business.
Rhode Island Treasury's proxy voting guidelines reflect the fiduciary duty of the Rhode Island Treasurer’s Office to vote proxies in the best interest of our members and constituents. Our goal is to vote our proxies in accordance with both their financial interests and their values.
You can learn more about our proxy voting policies, as well information on the votes we have cast, here.