Colin A. Young, State House News Service
For the fourth time in a row, the Massachusetts Pension Reserves Investment Management’s main investment fund ended last fiscal year at another record level, swelling to $129.5 billion.
Michael Trotsky, PRIM’s executive director and chief investment officer, said this week that the Pension Reserves Investment Trust (PRIT) fund earned $14.7 billion (a return of 12.7%) and expanded on the high-water mark of $115.4 billion it set a year ago. After paying beneficiaries, the PRIT fund grew by $14.1 billion during fiscal 2026 to reach $129.5 billion as of June 30.
He told the PRIM Investment Committee on Tuesday that it was the fund’s strongest fiscal year return in five years and landed well above its 9% historical average.
“For the second consecutive fiscal year, all seven major asset classes posted positive returns – the first time in 20 years the Fund has produced back-to-back fiscal years with every major asset class positive. That combination has occurred only six times in the past two decades, and never in consecutive years until now,” Trotsky said, according to remarks provided to the News Service. “Our 12.7% net one-year return far exceeded our most important goal, the 7% actuarial rate of return, by a wide margin.”
While Trotsky celebrated that the fund beat the actuarial rate of return, meeting materials showed that the fund actually trailed its own investment benchmark in fiscal 2026. PRIM said the fund produced a 12.7% annualized return, which is 2.1 points below PRIM’s total capital fund benchmark of 14.8% and 1.6 points below its net implementation benchmark of 14.4%, according to PRIM documents.
The retirement funds of state employees, teachers and many municipal employees in Massachusetts are invested through PRIM and its PRIT fund. Officials have said there are more than 300,000 beneficiaries of the fund.
Read the original State House News Service article, here.