Fred Wilms, the Republican candidate for state treasurer, has plans to change how Connecticut invests $65-$75 billion of government workers’ pensions. Wilms, who has experience working in global finance for 20 years on Wall Street and 23 years at Webster Bank, wants to dial down investments in private finance and equity markets.

Investment Strategy

Wilms argued that returns in private equity, private credit, and emerging markets have declined and would advise moving 50 to 75 percent of those investments to more broad-based exchange-traded funds. He also stated that he would not abandon two projects launched by his opponent, Democrat Erick Russell: a “safe harbor fund” to support out-of-staters seeking reproductive or gender-affirming care in Connecticut, and the $3,200 “baby bonds” invested on behalf of Medicaid-covered babies born in the state.

Wilms emphasized the importance of not letting ideological concerns, such as environmental, social, and governance (ESG) policies, factor into investment decisions. He believes the treasurer’s job is to ensure the highest possible returns for state retirees and retired public school teachers.

Qualifications and Experience

Wilms cited his experience working to keep taxes down and bond ratings high as chair of the Norwalk Board of Estimate and Taxation during the Great Recession. He also mentioned his experience helping to craft the 2017 state “fiscal guardrails” and volatility cap as a state legislator.

Wilms argued that he could improve investment performance by having Connecticut follow other states’ lead in creating an independent advisory board to make investment and hiring decisions, rather than relying on a single person (the treasurer).

Original reporting: New Haven Independent — read the source article.