Mass PRIM exceeds $ 100 billion in assets
The Massachusetts Pension Reserves Investment Management (Mass PRIM) pension fund exceeded $ 100 billion in assets for the first time, with its valuation reaching $ 101 billion at the end of October.
“This $ 101 billion milestone is historic in nature,” said Deborah Goldberg, Massachusetts state treasurer and chairman of the board of MassPRIM, in a statement. “This reflects the execution of a pragmatic and focused strategy combined with excellent internal evaluation and analysis skills in bull and bear markets. “
Mass PRIM said the PRIT fund, a mutual fund that invests the assets of the Massachusetts State teacher and employee pension systems, and other municipal pension systems that choose to invest in the PRIT fund, has more than doubled over the past decade.
In August, MassPRIM posted the highest year-to-date return in the fund’s 35-year history, with its portfolio gaining 29.5% net of fees for the year ended June 30 and outperforming its benchmark of 8.9%. This equates to a net investment gain of $ 22.1 billion for the year, $ 6.7 billion more than the benchmark. The net outflow to pay retirement benefits was about $ 1.2 billion. The record surpassed the fund’s previous best performance of 25.6%, which it returned in its first year in 1986.
Six of the top seven asset classes outperformed their respective benchmarks for the year, led by private equity, which generated an astounding 70.5% net of fees, followed by global equities, which returned 42% net of fees. The fund noted that 60% of its global equity portfolio is passively managed.
“The record performance of fiscal 2021 is a direct result of pragmatic strategies, informed analysis and deliberate execution,” said Goldberg.
MassPRIM said its Project SAVE initiatives now exceed $ 250 million per year and have enabled the fund to invest more heavily in the best performing, albeit more expensive, private investments without increasing the overall risk and cost profile of the fund. funds.
The PRIT fund joins the Virginia Retirement System (VRS) Trust Fund as a repo with over $ 100 billion in assets. The Virginia fund broke the $ 100 billion mark for the first time this summer, with its investment portfolio reporting 27.5% net of fees for fiscal 2021, which ended June 30, to reach approximately $ 101.8 billion in assets.
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Keywords: Mass PRIM, Massachusetts Pension Reserves Investment Management, pension fund, PRIT Fund