You can now read 5 articles in a month for free on Read as much as you want anywhere and anytime for just 99¢.

Massachusetts state pension fund posted a 15.2 percent investment gain for 2013

The Massachusetts state pension fund posted a 15.2 percent investment gain for 2013, as strong markets helped the fund add $7.9 billion to its coffers.

US equities were the strongest performers, followed by private equity.

Continue reading below

Hedge funds also produced strong gains, as the pension fund began to reap the benefits of direct investing, instead of middleman fund-of-funds.

“This was an outstanding year that capped five really strong years,” Michael Trotsky, chief of the Pension Reserves Investment Management, said at a public meeting Tuesday morning.

State Treasurer Steve Grossman predicted that the strong returns would lead to a decrease in the unfunded pension liability for the year.

Mindful that markets have rallied vigorously since the financial crisis, the pension fund’s overseers said they are looking to protect against future drops in the market. They presented a proposal to the investment committee Tuesday to move a 10 percent slice of the bond portfolio into longer-duration 20- and 30-year bonds. Under the plan, they would move $2 billion in the first three months of the program, with a total of nearly $6 billion ultimately moving.

Board members had in-depth discussions about whether bonds remained too risky a bet to count on for insurance against falling equities.

Beth Healy can be reached at
Loading comments...
Want each day's news headlines delivered fresh to your
inbox every morning? Just connect with us
in one of the following ways:
Please enter a valid email will never post anything without asking.
Privacy Policy
Subscriber Log In

You have reached the limit of 5 free articles in a month

Stay informed with unlimited access to Boston’s trusted news source.

  • High-quality journalism from the region’s largest newsroom
  • Convenient access across all of your devices
  • Today’s Headlines daily newsletter
  • Subscriber-only access to exclusive offers, events, contests, eBooks, and more
  • Less than 25¢ a week
Marketing image of
Marketing image of