Massachusetts Pension Reserves Investment Management Board, Boston, returned 13.6% on its investments in 2010, outperforming the $48.3 billion system's custom benchmark by 174 basis points.
Private equity delivered the highest return for the year, at 17.13%, followed by value-added fixed income, with 16.13%; global equity, 15.28%; timber/natural resources, 14.29%; and real estate, 13.46%.
MassPRIM's core-fixed income holdings returned 7.44%.
Hedge funds, net of fees, delivered the lowest gain of 6.32%, although they still exceeded the board's custom hedge fund benchmark of 4.73%.
Separately, the board on Tuesday approved allocating up to $1 billion for new private equity commitments during 2011, and an additional $500 million for distressed debt mandates. Actual fund commitments will be determined as opportunities arise.
The board approved committing up to $200 million for middle-market buyout fund Berkshire Partners VIII, and up to $20 million for Keytone Ventures II, an early-stage venture capital fund focused on the Chinese market.