State investment authority approves larger budget as assets under management top $206 billion

RALEIGH — The North Carolina Investment Authority has approved a larger operating budget for the next fiscal year after reporting more than $206 billion in assets under management.

The authority recorded $206.84 billion in assets under management as of March, board members were told during a performance review Wednesday, according to the Department of State Treasurer. The total reflects growth from about $167 billion in June 2022.

The North Carolina Retirement Systems’ asset allocation totaled $147.4 billion on May 14, compared with $139.5 billion on March 31. The treasurer’s office said most of that increase came from profits from equity holdings. Other assets include about $44.5 billion in cash management assets, nearly $20 billion in supplemental retirement plans and $3.2 billion in other categories.

Board members approved a $40.4 million operating budget for fiscal year 2026-27. That is up from the current $23.6 million budget. The treasurer’s office said the increase is driven largely by staffing, salary adjustments and potential performance-related incentive compensation. Legal expenses and investment support contracts also account for part of the increase.

Staffing is projected to grow from 44 positions to 64 positions over the next 12 to 18 months.

State Treasurer Brad Briner, who chairs the investment authority, defended the larger budget by tying the added spending to investment performance.

“Price is what you pay, and value is what you get,” Briner said in the announcement. “Right now, folks across the state are pretty positive about our outcomes and what it means for our state employees and retirees. People get the idea that if we can spend $40 million and get $25 billion over a year and a half it’s a good thing to do.”

The authority also reviewed a five-year strategic plan outlining major initiatives and risks. According to the treasurer’s office, the plan says the authority should compete as a “market-leading investor and partner” in public and private markets.

The budget increase may draw interest from lawmakers and public employees because the authority manages investments tied to retirement systems and other public funds. The question for policymakers is whether additional internal investment staffing and compensation costs are justified by long-term returns and risk management.

Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.