Massachusetts Pension Reserves Investment Management Board, Boston, will search for a private equity consultant, according to a board meeting summary.
The board is conducting the search because of the upcoming expiration of incumbent Hamilton Lane’s contract on Feb. 1. Hamilton Lane is invited to rebid.
Also, MassPRIM will search for a firm to provide private equity stock distribution management services. “From time to time, private equity partnerships distribute shares of publicly traded companies (stock distributions) directly to the PRIT Fund. It may be possible to enhance value and reduce costs by engaging a third party to provide such services to PRIM,” said materials prepared for the board meeting.
Both RFPs will be available on MassPRIM’s website.
Spokesman Michael Sherry could not provide information on when the RFPs will be issued by press time.
Separately, the board approved investing up to $100 million with State Street Global Advisors for a passive hedge fund replication strategy.
State Street currently manages a passive domestic equity strategy for MassPRIM.
Also, Townsend Group was rehired as a general consultant for the board’s real estate and timberland portfolios, pending successful contract negotiations. Also, Bard Consulting, Callan Associates, Harvest Capital Partners, Meketa Investment Group, RCLCO and Real Estate Fiduciary Services were hired to provide project real estate consulting services on an as-needed basis, subject to successful contract negotiations.
An RFP was issued in April.
MassPRIM also hired HedgeMark to provide hedge fund managed account platform services, pending successful contract negotiations.
An RFP was issued in January. The other finalists were Arden Asset Management, Lighthouse Investment Partners, Lyxor Asset Management, Pacific Alternative Asset Management Co., Sigma Analysis & Management and Rock Creek Group.
Finally, the $60.7 billion plan returned a gross 17.6% for the fiscal year ended June 30, surpassing its 14.9% core benchmark by 268 basis points.
Among the various asset classes, private equity returned 26.8%, followed by global equity at 23.1%, real estate, 13.5%; timber/natural resources, 13.4%; hedge funds, 10.8%; value-added fixed income, 10%; and core fixed income, 5.8%.
For the three, five and 10 years ended June 30, the plan returned an annualized 9.8%, 12.9% and 7.9%, respectively.
As of June 30, the plan had an asset allocation of 43.1% global equity, 13.9% core fixed income, 11.1% private equity, 9.6% hedge funds, 8.9% real estate, 8.5% value added fixed income, 3.9% timber/natural resources, 0.9% overlay and 0.1% portable alpha wind down.
