Service Providers

Investment Managers

Domestic Equity ManagersInternational Equity ManagersGlobal Equity & Emerging MarketFixed Income ManagerAlternative Managers

Domestic Equity Managers

The domestic equity portfolio is invested in both large capitalization equity strategies (large cap) and small capitalization equity strategies (small cap). The Fund’s domestic equity portfolio is actively managed in an attempt to outperform a diverse set of indices. Each investment manager’s performance is measured against an assigned index based on the stated investment strategy.

Manager Location Inception Date Investment Mandate
Alliance Capital Management New York, NY Feb-92 Small Cap Growth
Aristotle Capital Management Los Angeles, CA Mar-16 Large Cap Value
Boston Partners Boston, MA Mar-16 Large Cap Value
RBC Global Asset Management Chicago, IL Nov-05 Small Cap Growth
Robeco Boston Partners Boston, MA May-12 Small Cap Value
State Street Global Advisors Boston, MA Apr-15 Small Cap Value
State Street Global Advisors Boston, MA Apr-17 Large Cap Equity

International Equity Managers

The international equity managers are benchmarked against the MSCI EAFE index, which includes the developed markets of Europe, Australia and the Far East. The international equity portfolio is comprised of three actively managed accounts. The primary strategy is to invest in international equity funds to achieve consistent, positive real returns and to maximize long-term total return within prudent levels of risk through a combination of income and capital appreciation.

Manager Location Inception Date Investment Mandate
Gryphon International Toronto, Ontario Apr-05 Growth
Morgan Stanley Asset Management New York, NY Nov-97 Large Cap Value
Principal Global Equities Des Moines, IA Jun-17 Small Cap

Global Equity & Emerging Markets

The MBTA Retirement Fund measures the global equity and emerging markets portfolio against the MSCI ALL Country World Index, a benchmark comprised of stocks from 46 different countries including 23 countries classified as developed markets (including the United States) and 23 countries that are considered emerging markets. The manager is also measured against a secondary blended benchmark that consists of 71.4% of the MSCI ALL Country World Index and 28.6% the MSCI Emerging markets index.

Manager Location Inception Date Investment Mandate
Sands Capital Management Arlington, VA Oct-12* Growth
*Original Large Cap Growth Mandate Inception March 2004

Fixed Income Managers

The Fund’s fixed income portfolio is benchmarked against the Barclays Aggregate Bond Index, BC GOV/Credit, BC MBS, S&P/LSTA Leveraged Loan, BC U.S. TIPS and Barclays Multiverse. Fixed income managers serve in a specialist role managing debt securities. Domestic core fixed income managers’ investments may include (i) U.S. dollar denominated obligations of the United States Government and its Agencies and instrumentalities, and U.S. corporations, (ii) mortgage-backed securities including CMOs and commercial mortgage backed securities (“CMBS”), (iii) Asset Backed Securities(“ABSs”), (iv) registered 144A securities if applicable, (v) municipal bonds, (vi) short term securities, (vii) securities of foreign companies or foreign countries (sovereigns or supranational) denominated in U.S. dollars, trading in the U.S. markets and capable of settlement in U.S. markets (Yankee bonds), and (viii) dollar denominated obligations of U.S. companies trading outside the U.S. (“Eurobonds”).

Manager Location Inception Date Investment Mandate
AFL- CIO HIT Washington, D.C. Jun-94 MBS
Amalgamated Bank New York, NY Jun-06 Real Estate Debt
Eaton Vance Management Boston, MA May-13 Senior Loan
Franklin Templeton New York, NY Apr-11 Global Fixed Income
Income Research & Management Boston, MA Jun-07 Core Bonds
Income Research & Management Boston, MA Feb-10 TIPS
Loomis, Sayles & Company Boston, MA Jun-89 Core Plus

Private Equity

The private equity portfolio is used to increase the expected long-term return of the MBTARF portfolio, while generating cash flow and providing diversification. The private equity portfolio is diversified among sub-classes which include: venture capital, growth equity, buyouts, mezzanine, secondary strategies, distressed, energy, and special situations. The MBTARF private equity portfolio is benchmarked to a State Street Customized Benchmark, which takes into account the portfolio’s allocations to the various private equity sub-classes.

Manager/Fund Location Vintage Year Investment Mandate
ABS CAPITAL PARTNERS IV Baltimore, MD 2000 Growth
ADD ONE PARTNERS St. Peter Port, Guernsey 2000 Venture
AG EQUITY PARTNERS New York, NY 2001 Growth Equity
PINEBRIDGE GLOBAL EMERGING MARKETS PARTNERS New York, NY 1998 Buyout
ASCENT VENTURES II Boston, MA 1995 Venture
ASCENT VENTURES III Boston, MA 2000 Venture
BOSTON MILLENNIA II Boston, MA 2000 Venture
CHARTWELL CAPITAL II Jacksonville, FL 1998 Growth Equity
CRESCENDO IV Palo Alto, CA 2000 Venture
CRESCENT MEZZANINE PARTNERS VIIB New York, NY 2016 Mezzanine
CROSS ATLANTIC TECHNOLOGY Randor, PA 2000 Venture
SL CAPITAL PARTNERS ESP IIA Edinburg, UK 2004 Buyout
SL CAPITAL PARTNERS ESP I Edinburg, UK 2000 Buyout
SL CAPITAL PARTNERS ESP 2006B Edinburg, UK 2007 Buyout
SL CAPITAL PARTNERS ESP 2008A Edinburg, UK 2008 Buyout
GROSVENOR OPPORTUNISTIC CREDIT FUND III Chicago, IL 2013 Special Situations
HALIFAX CAPITAL PARTNERS II Washington, D.C. 2006 Buyout
LAZARD TECHNOLOGY II New York, NY 2001 Venture
LEXINGTON CAPITAL PARTNERS VIB New York, NY 2006 Secondary Fund of Funds
LEXINGTON CAPITAL PARTNERS VII New York, NY 2009 Secondary Fund of Funds
LEXINGTON CAPITAL PARTNERS VIII New York, NY 2015 Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS II New York, NY 2008 Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS III New York, NY 2013 Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS New York, NY 2005 Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS IV New York, NY 2017 Secondary Fund of Funds
NEW MOUNTAIN PARTNERS II New York, NY 2005 Buyout
NEW MOUNTAIN PARTNERS III New York, NY 2007 Buyout
NEW MOUNTAIN PARTNERS IV New York, NY 2014 Buyout
OAKTREE MEZZANINE FUND III New York, NY 2010 Mezzanine
OCH ZIFF ENERGY FUND New York, NY 2011 Energy
OPUS CAPITAL VENTURE PARTNERS V Menlo Park, CA 2006 Venture
PACIFIC VENTURE II Irvine, CA 1998 Venture
PAUL CAPITAL HEALTHCARE III San Francisco, CA 2008 Mezzanine
PHAROS CAPITAL PARTNERS Dallas, TX 1999 Growth Equity
PHAROS CAPITAL PARTNERS II Dallas, TX 2004 Growth Equity
PHAROS CAPITAL PARTNERS III Dallas, TX 2013 Growth Equity
QUADRANGLE CAPITAL PARTNERS II New York, NY 2005 Buyout
SCP PARTNERS I Wayne, PA 1996 Venture
SCP PARTNERS II Wayne, PA 2000 Venture
SIGULER GUFF BRIC OPP FUND II New York, NY 2008 Buyout
SIGULER GUFF DISTRESSED OPP FUND II New York, NY 2006 Distressed
SIGULER GUFF DISTRESSED OPP FUND III New York, NY 2008 Distressed
SL CAPITAL PARTNERS ESF I Edinburg, UK 2014 Buyout
SL CAPITAL PARTNERS SOF II Edinburg, UK 2015 Secondary Fund of Funds
STERLING CAPITAL PARTNERS Chicago, IL 2002 Growth Equity
STERLING CAPITAL PARTNERS II Chicago, IL 2005 Growth Equity
STERLING CAPITAL PARTNERS III Chicago, IL 2007 Growth Equity
STERLING CAPITAL PARTNERS IV Chicago, IL 2012 Growth Equity
STERLING VENTURES Chicago, IL 2000 Venture
SVB CAPITAL PARTNERS II Menlo Park, CA 2007 Venture
SVB CAPITAL PARTNERS III Menlo Park, CA 2014 Venture
SVB STRATEGIC INVESTORS III Menlo Park, CA 2007 Venture
SVB STRATEGIC INVESTORS VIII Menlo Park, CA 2016 Venture
SYNDICATED COMM IV San Francisco, CA 1999 Growth Equity
TCW CRESENT MEZZANINE PARTNERS VB New York, NY 2008 Mezzanine
THOMAS H LEE EQUITY FUND VI Boston, MA 2006 Venture
THOMAS WEISEL GLOBAL GROWTH PARTNERS II San Francisco, CA 2004 Secondary Fund of Funds
TOP TIER VENTURE VELOCITY FUND San Francisco, CA 2015 Secondary Fund of Funds
VANGUARD VII San Jose, CA 2000 Venture
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VI Portola Valley, CA 2010 Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VII Portola Valley, CA 2012 Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING IV Portola Valley, CA 2004 Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING V Portola Valley, CA 2006 Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING III Portola Valley, CA 2000 Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VIII Portola Valley, CA 2015 Mezzanine
WELLINGTON PARTNERS II Munich, Germany 2000 Venture
WLR RECOVERY FUND V New York, NY 2011 Special Situations
WP+G VA VI (LIGHTSPEED) Menlo Park, CA 2000 Venture
Z CAPITAL SPECIAL SITUATIONS FUND II New York, NY 2013 Special Situations

Real Estate

The equity real estate program is comprised primarily of two separate but complementary investment strategies – core and specialty. Core investments include property types in multi-family housing, retail, industrial and office buildings. These assets are characterized by stable and increasing income levels and are located in major metropolitan areas which exhibit reasonable economic diversification. Specialty investments include property types in hotels, assisted-living and congregate care facilities. Specialty strategies enhance returns of assets capable of, but not currently, exhibiting core type characteristics. The MBTA Retirement Fund’s allocation to real estate equity is intended to enhance the return, risk and portfolio diversification characteristics of the Fund’s total portfolio. It is anticipated that investments in equity real estate will, over a full market cycle, produce an income return that is in excess of the yield of an investment grade, core fixed income investment combined with some level of equity appreciation. In addition, it is expected that equity real estate will exhibit a lower correlation with traditional equity and fixed income securities.

Manager Location Inception Date Investment Mandate
AFL-CIO BIT Washington, D.C. 2007 Open Ended
Colony Investors VII Los Angeles, CA 2006 Opportunistic
Intercontinental Fund III Boston, MA 2001 Core Plus
Intercontinental US REIF Boston, MA 2010 Open Ended
JP Morgan Special Situations Property Trust New York, NY 2006 Open Ended
Multi Employer Property Trust Washington, D.C. 1989 Open Ended
Pearlmark Aslan Realty Partners III Chicago, IL 2005 Value Add
Pearlmark Mezzanine Realty Partners III Chicago, IL 2007 Mezzanine
Pearlmark Multifamily Partners Chicago, IL 2007 Sector Focused
Senior Housing Partners Fund V Madison, NJ 2015 Sector Focused
Siguler Guff Distressed Real Estate Opportunity Fund New York, NY 2010 Opportunistic
Siguler Guff Distressed Real Estate Opportunity Fund II New York, NY 2014 Opportunistic
TA Associates Realty Fund IX Boston, MA 2008 Value Add
TA Associates Realty Fund VIII Boston, MA 2007 Value Add

Hedge Funds

The objective of the MBTARF’s hedge fund program is to reduce the volatility of the total fund while attempting to maximize returns in a variety of market conditions. As a group of strategies, hedge funds represent a broad set of investment styles, mandates, and products that focus primarily on the liquid equity, fixed income, and derivatives markets, but that may also include allocations to non-traditional investments, including illiquid securities and investments. There are two primary methods for investing in hedge funds: funds of hedge funds; and single manager funds. The MBTARF primarily utilizes funds of hedge funds in an effort to significantly reduce risk through diversification.

Manager Location Inception Date Investment Mandate
Hamilton Lane Bala Cynwyd, PA Jun-17 Strategic Opportunities
Rock Creek Washington, D.C. Jan-11 Fund of Funds
Silver Creek New York, New York Jun-03 Fund of Funds

Risk Parity – Diversified Beta

The Risk Parity manager utilizes a risk premium capture strategy that seeks to generate returns by investing in equity, bond and commodity markets using a risk-balanced investment process. Specifically, the manager selects the appropriate assets for the strategy, allocates them based on their proprietary risk management and portfolio construction techniques, and then applies an active position process to improve expected returns. The MBTA Retirement Fund invests in Risk Parity / Diversified Beta products because it provides the Fund with diversification and attractive returns. Additionally, the strategy provides daily liquidity, no lock-up, high capacity, and high transparency-all of which are attractive qualities for the Fund.

Manager Location Inception Date Investment Mandate
Invesco National Trust Boston, MA Jul-12 Diversified Beta
PanAgora Asset Management Boston, MA Dec-16 Diversified Beta

Professional Services

Independent AuditorConsultantActuaryLegal CounselCustodian

KPMG, LLP

www.kpmg.com
Two International Place
23rd Floor

Tel: +1 617 849 6501
Fax: +1 617 849 6500

Segal Marco Advisors

Investment Consulting Services

All investment managers wishing to do business with the MBTARF should contact Julian Regan at:

Segal Marco Advisors
25 Braintree Hill Office Park
Suite 103
Braintree, MA 02184
Phone: (617) 298-0967
Fax: (781) 228-5871

http://www.segalmarco.com

Conduent  HR Consulting, LLC

Actuary services

101 Federal St #900, Boston, MA 02110
Tel: (617) 275-8050

Holland & Knight

www.hklaw.com

10 St James Ave
Boston, MA 02116

Tel: (617) 523-2700

State Street Bank & Trust Company

www.statestreet.com

Crown Colony Office Park
1200 Crown Colony Drive
Quincy, Massachusetts 02169

Tel: (617) 786-3000

Mailing Address:
Box 5501
Boston, Massachusetts 02206-5501