Investing In Massachusetts
A Winner For State and Pension Fund
MAY 2006 - Under State Treasurer Tim Cahill, the Commonwealth's $41 billion Pension Reserves Investment Management (PRIM) Board has instituted a successful economically targeted investment (ETI) program. Its purpose is to invest money in Massachusetts that will boost the state's economy and employment while at the same time produce a market rate of investment return for the pension fund (PRIT Fund).
An example of one such investment was the recently completed construction of a 200-unit Ten Faxon apartment complex in Quincy. As part of its ETI program, PRIM allocated $10 million to locally-owned Intercontinental Real Estate Corporation, developer of Ten Faxon, as well as a 685-unit residential complex near the convention center in South Boston which is scheduled to break ground this fall.
These and other Massachusetts properties will produce additional tax revenue and generate thousands of labor hours (see chart below) in Massachusetts for this state's vendors, building trades, construction companies and sub-contractors. The overall objective of PRIM's ETI Fund is to provide risk adjusted returns targeting internal rates of return on its investments in the range of 15% to 20%.
"ETIs are not social investments," PRIM Board member Ralph White pointed out. "As trustees (Board members) we have a fiduciary responsibility to achieve the highest possible return on our investments. The returns we are getting on our real estate ETIs are as good as we get elsewhere. It's a win for both the PRIT Fund and the State."
Retirees
Public Employees
Since 1968 the Retired State, County and Municipal Employees Association has been the leading voice for Massachusetts public retirees and their families. Join with our 52,000 members as we continue the fight.
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