Massachusetts Pension Fund Gains 12.82% for Fiscal Year 2010

It’s pretty hard to argue with these results.  Over the long term, the money has been managed exceptionally well.

As reported in the Boston Globe:…

The Pension Reserves Investment Management Board, or PRIM, which manages the $41 billion fund, said today that the pension fund earned an investment return of 12.82 percent for the year ended June 30, bolstered by double-digit returns in bonds private equity international stocks and other investments. Overall, the pension fund gained $3.6 billion for the 2010 fiscal year.

And it comes at a good time for Treasurer Timothy P. Cahill, who is running an as independent against Massachusetts Governor Deval Patrick and Republican Charles Baker.

“As chairman of the PRIM Board, I remain focused on the long-term investment performance of the fund,” Cahill said in a statement. “These results demonstrate that our disciplined approach continues to serve our beneficiaries and taxpayers well.”

Since January 2003, the board noted, the pension fund has achieved an annual return of 7.66 percent per year compared to a return of 4.15% for the S&P 500 index of major publicly traded companies. Since the fund’s inception, it has achieved an annual return of 9.36 percent.

“The (pension fund’s) fiscal year 2010 performance was outstanding on both an absolute and relative basis,” said Karen Gershman, interim executive director of the PRIM board. Michael Travaglini, who formerly ran the state pension fund, resigned in June to take a job with a Chicago investment management firm.

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