US - The Massachusetts state pension fund reached a new high of US$40.2bn and returned 12.7% in 2005.
The Pension Reserves Investment Trust (PRIT) fund’s strong performance last year meant it outpaced the public fund median return of 7.9%, and came in 445 basis points higher than the state actuarial benchmark of 8.25%.
State Treasurer Tim Cahill (pictured) welcomed the performance as great news for Massachusetts public employees. “PRIT’s assets have reached a record high and have exceeded the benchmark returns mandated by the legislature.”
Cahill attributed the performance to the diversification of investments, including shifting significant assets into private equity, emerging markets, hedge funds and real estate over the last 3 years.
“Diversification enabled us to stay ahead of the national average,” he said.
According to the Trust Universe Comparison Service (TUCS), the fund’s performance over one and three years outpaced 95% of pension funds in its universe - public sector fund worth more than $1bn.
The PRIT board met yesterday, as trustees voted on asset allocation recommendations for the coming three-year period.
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