WHY THIS MATTERS

Why Stewardship
Matters To MassPRIM

The Massachusetts Pension Reserves Investment Management Board (MassPRIM) serves as fiduciary for the Pension Reserves Investment
Trust (PRIT) Fund.

As a fiduciary, MassPRIM acts in the best interests of the pension beneficiaries to prudently manage assets on their behalf. This responsibility forms the foundation of MassPRIM’s investment mandate. MassPRIM exists to ensure that the Commonwealth of Massachusetts can meet its pension obligation sto public employees while minimizing taxpayer burden.

MassPRIM pursues long-term value creation through diversified investment strategies, cost-effective operations and partnerships with high-quality investment management firms. The PRIT Fund’s Investment Policy Statement sets out the investment objectives, risk parameters and governance framework that guide this work.

Achieving sustained long-term returns requires regularly evaluating non-traditional and emerging risks that have the potential to affect Fund performance. Complex forces—such as climate change, labor market disruptions and natural resource constraints are changing how companies compete, transforming their business models, and creating uncertainties that will unfold over the decades-long timeframe relevant to the PRIT Fund.

MassPRIM’s Stewardship Program is MassPRIM’s systematic response to these emerging risks and opportunities. The Program seeks to use a range of tools, including proxy voting, company and manager engagement, and strategic partnerships to protect and enhance long-term value creation.

MassPRIM’s formal Stewardship Program launched in 2023. This inaugural report documents the first complete implementation cycle, detailing the governance framework developed, the priorities identified, and progress made. MassPRIM remains committed to continuous improvement, innovation, and transparent reporting as the Stewardship Program matures.

MassPRIM’s stewardship approach is structured around three core principles

These principles have guided every dimension of the Program—from priority identification and portfolio company engagement to manager oversight and program evaluation.

01

Enhance Risk/
Return

Enhance the risk/return expectations of the PRIT Fund.

02

Create Measurable
Impact

Create tangible impact by pursuing focused and measurable efforts.

03

Promote Leadership &
Innovation

Promote thought leadership and explore
opportunities for innovation.