Massachusetts Pension Reserves Investment Management Board, Boston, hired RhumbLine Advisers to manage an initial allocation of $1 billion in a passive S&P 500 index fund for the $95.7 billion pension plan.
Funding will come from transferring assets managed by State Street Global Advisors, which currently manages 26% of MassPRIM's total investment portfolio. The board is looking to reduce manager concentration risk. According to MassPRIM's investment policy, no passive manager should manage more than 25% of the PRIT fund. Allocating to RhumbLine will reduce SSGA's exposure to 25%.
The board also rehired NEPC as its asset allocation consultant.
The RFP for the asset allocation consultant was issued in August 2020. Meketa Investment Group, Verus Advisory and RVK were the other firms that submitted bids.
The hires were made Tuesday at MassPRIM's board meeting.
Also Tuesday, MassPRIM reported it posted a record gross return of 30% for the fiscal year ended June 30.
