The Massachusetts Pension Reserves Investment Management (PRIM) Board is charged with the general supervision of the Pension Reserves Investment Trust (PRIT) fund, created by legislation (Chapter 661 of the Acts of 1983) to accumulate assets through investment earnings and other revenue sources in order to assist the Commonwealth in reducing its unfunded pension liability, and likewise, to assist local participating retirement systems in meeting their pension obligations. The PRIT fund is a pooled investment fund that invests the assets of the Massachusetts Teachers’ and State Employees’ Retirement Systems, and the assets of county, authority, district, and municipal retirement systems that choose to invest in the PRIT fund. The nine-member PRIM board acts as trustee for each retirement system that invests assets in the PRIT fund.
It manages around $71.8 billion in assets and has long-term asset allocation targets of global equity 40 per cent, core fixed income 13 per cent, value-added fixed income 10 per cent, private equity 10 per cent, real estate 10 per cent, timber/natural resources 4 per cent, hedge funds 9 per cent and portfolio completion strategies 4 per cent.
PRIM’s mission is to provide a professional investment service that maximises the return on investment within acceptable levels of risk by broadly diversifying its investment portfolio; capitalising on economies of scale to achieve cost-effective operations; and providing access to high-quality, innovative investment management firms, all under the management of a professional investment staff and members of the PRIM board and its committees.