Massachusetts Pension Reserves Investment Management Board, Boston, rehired Hamilton Lane as the $42.7 billion fund's private equity consultant for a new three-year contract effective through February 2013.
The RFP was issued Oct. 19.
Separately, the board adopted formal “manager sizing” guidelines, limiting the portion of MassPRIM's portfolio that any one money manager can oversee. No single manager of active strategies can oversee more than 10% of PRIM's assets, while passive managers will be limited to 25%. Firms that manage both active and passive portfolios will have a 15% limit.
The limits were set to protect fund assets from what investment staff documents distributed at today's board meeting referred to as “firm risk.” None of MassPRIM's current managers exceeds those newly adopted limits.
The state fund's assets stood at $42.7 billion as of Dec. 31, up 17.6% from the year before, said Stan Mavromates, chief investment officer. For the calendar year, that gain trailed the fund's custom benchmark by 71 basis points. However, from July 31 to Dec. 31, the fund's 13.5% gain outperformed its benchmark by 118 basis points.