2007 March - Investments Earned 16.72% in '06 - Boosted by another of its late season rallies in November and December, the Massachusetts pension investment fund earned 16.72% in Year 2006, continuing to maintain its standard as one of the top performing public funds in the country.

After a dismal start in the first three years of this century, with the fund losing a combined 15.46% during that period, the fund, known as the CommonwealthÕs Pension Reserves Investment Trust (PRIT) Fund, has had four straight strong double-digit market years. The Fund, now $46.7 billion, has earned 11.38% on an annualized basis since its inception in 1984.

The Fund was created in order to address the massive unfunded pension liability of the State and TeachersÕ Retirement systems, with a current full-funding target date of 2023. "Since the fund assumes an annual earnings of 8.25%, which has been exceeded by three percent, it puts us in a stronger position to raise the $12,000 COLA base," says Association President Ralph White.

Under law, local retirement systems are allowed to place their pension funds within PRIT for investment. Twenty-nine of these systems have placed all of their money in PRIT and another forty-four have placed part of their pension funds within PRIT."The systems, whose money is fully invested in PRIT, will have a year 2006 earnings comparable to the state and teachers," said White. "Retirement boards, which manage their own investments, should also show some outstanding numbers for '06. It was a good year all-around."

The Fund has an asset allocation consisting of a number of categories. The big winners last year were international equities (26.55%), emerging markets (28.13%), real estate (25.41%) and alternative investments such as buyouts and venture capital (40.38%).