The Massachusetts state pension fund??s investment portfolio lost 23.6 per cent in the fiscal year ended June 30 - its worst annual decline ever.
State officials say the Massachusetts Pension Reserves Investment Trust (PRIT) lost $12.8bn, due primarily to heavy exposure to foreign stocks.
??The second half of 2008 was probably the most difficult economic period since the Depression, so anybody who had exposure to the market felt deep losses,? said Michael Travaglini, the pension fund??s executive director.
PRIT still has $37.8bn in investments - plenty of money to pay benefits for the foreseeable future. However, the recent losses could eventually require an increase in the roughly $1.4bn that the state contributes to PRIT each year.
