February 27, 2025

Markets and PRIT Fund Performance

The returns of the PRIT Fund for the calendar year ended December 31, 2024, were strong. The PRIT Fund was up 9.1%, an investment gain of $9.1 billion, net of fees. Despite elevated policy and market uncertainty, equity market volatility in recent months has remained at or below historical averages and markets have moved higher. The bond market has been more volatile, and yields have moved higher, an indication that investors are trying to decipher the impact of possible new policies and directives on inflation and economic growth. The Fund ended with a balance of $109.7 billion at December 31, 2024.

The news flow has been overwhelming and deciphering it is difficult. PRIM’s investment philosophy is predicated on the belief that it is very difficult to consistently predict the future and the direction of the financial markets. As long-term investors, we believe it is more impactful to evaluate changes that actually occur rather than speculating about the future. It is difficult to predict which of the many proposals will be implemented and even more difficult to predict their impact on the economy or financial markets. No policy change impacts the economy or the markets in isolation.

We have reviewed the strong economic baseline here in the U.S. and noted its resilience. We can now safely say the economy had a soft-landing in 2024, and we are no longer in the early stages of an economic recovery. As always, our job at PRIM is to maintain a diversified portfolio with components that will perform well in any environment and no matter what the future holds. With that as the goal, the staff recommended, and the Investment Committee approved the 2025 asset allocation policy which made no changes to the current allocations – we believe its current balance remains appropriate.

Organizational Updates

In early February, Governor Healey appointed Mark Lapman to the PRIM Board, replacing Peter Monaco. Mark has been in the investment management business since 1979 managing equity and fixed income portfolios for public plans and corporations. He started as an analyst at Independence Investments, LLC focusing research on industrial, energy and financial companies. Later, he was instrumental in building the company’s client base—in particular, among large public pension plans, becoming CEO of the firm in 2000. Independence Investments was an early innovator in quantitatively oriented investment management techniques.

In 2009 Mark left Independence and co-founded Cooper Lapman Financial, LLC to provide investment and financial planning services to individuals and families. Cooper Lapman emphasized diversified, passive investing and liability-driven, goal-oriented planning. That company grew steadily and merged in 2023 with Focus Partners, where Mark now serves as a financial advisor. Mark earned a Ph.D. in History from Harvard University in 1982 and is a holder of the Chartered Financial Analyst (CFA) designation. Mark has served on several boards over the years including John Hancock Mutual Funds, the Martha’s Vineyard Museum, and the Whitehead Institute for Biomedical Research where he was also on the Investment Committee for fifteen years.

We thank Peter Monaco for his nine years of service on the PRIM Board, and we are very pleased that he has elected to remain with us as a member of the Investment Committee. Peter has always been an engaged and thoughtful participant.

Matt Marshall joined PRIM’s Private Equity team in February as an Investment Officer reporting to Alyssa Acker. Matt has more than 10 years of portfolio management experience, primarily allocating to private markets on behalf of endowments. Matt comes to PRIM after 7 years as Investment Director at Beth Israel Lahey Investment Office, sourcing and leading due diligence efforts for venture capital and private equity. Prior to that, Matt was an Investment Analyst at Mass General Brigham Investment Office. Matt holds a Bachelor’s degree in Business Administration in Finance and International Business from George Washington University.

Francesco Daniele, Director of Client Service, and Seth Gitell, Chief External Affairs Officer, recently received the CFA Institute’s Private Markets and Alternative Investments certificate. The certificate is earned through the successful completion of five courses designed to equip learners with the basic understanding and skills required for investing in these growing investment classes. In particular, the certificate focuses on private equity, private credit, real estate and infrastructure, commodities, and hedge funds. Additionally, George Tsipakis, Director of Investment Operations, Joseph Kamotho, Business System Analyst on the IT team, and Melisa Ng, Real Estate and Timberland Accounting Manager, recently received the CFA Institute’s Investment Foundations Certificate. The certificate is earned through the successful completion of six courses designed to provide learners with an overview of the essentials of finance, ethics, and investment roles, providing a clear understanding of the global investment industry including terminology and foundational concepts. Congratulations to them all.

*PRIM claims compliance with the Global Investment Performance Standards (GIPS®). GIPS® is a registered trademark of CFA Institute. CFA Institute does not endorse or promote this organization, nor does it warrant the accuracy or quality of the content contained herein. You may obtain a GIPS® Asset Owner Report by emailing mliposky@mapension.com.