MA Pension Program Enjoys 12.8% Return in FY 2010

July 30, 2010 ( – The Massachusetts Pension Reserves Investment Management (PRIM) Board announced that its Pension Reserves Investment Trust Fund (PRIT) enjoyed a 12.8%-return for the 2010 fiscal year, growing by $3.6 billion.

A news release from state Treasurer Timothy P. Cahill said the FY 2010 performance represented a 305-basis point increase over its 9.77% assumed rate of return for the period.

According to the announcement, the $41.3-billion fund’s fixed income holdings were up 32.75%, private equity was up 17.84%, global equity rose 14.28%, core fixed income increased 11.74%, and hedge funds headed north by 7.13%.  

The FY 2010 showing compares to the 23.9% or nearly $13-billion loss a year earlier.

Despite the loss, Cahill told the Boston Globe that the pension board and staff decided to stick largely to its diversified strategy, rather than shifting all the money to bonds and other conservative investments. “I am happy with both the board’s and the staff’s decision not to panic,’’ said Cahill, according to the newspaper.

The PRIT Fund represents the retirement assets of over 300,000 state employees and teachers and over 90 public retirement systems and municipalities within Massachusetts.