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.

ManagerLocationInception DateInvestment Mandate
Alliance Capital ManagementNew York, NYFeb-92Small Cap Growth
Aristotle Capital ManagementLos Angeles, CAMar-16Large Cap Value
Boston PartnersBoston, MAMar-16Large Cap Value
RBC Global Asset ManagementChicago, ILNov-05Small Cap Growth
Robeco Boston PartnersBoston, MAMay-12Small Cap Value
State Street Global AdvisorsBoston, MAApr-15Small Cap Value
State Street Global AdvisorsBoston, MAApr-17Large 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.

ManagerLocationInception DateInvestment Mandate
Gryphon InternationalToronto, OntarioApr-05Growth
Morgan Stanley Asset ManagementNew York, NYNov-97Large Cap Value
Principal Global EquitiesDes Moines, IAJun-17Small 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.

ManagerLocationInception DateInvestment Mandate
Sands Capital ManagementArlington, VAOct-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”).

ManagerLocationInception DateInvestment Mandate
AFL- CIO HITWashington, D.C.Jun-94MBS
Amalgamated BankNew York, NYJun-06Real Estate Debt
Eaton Vance ManagementBoston, MAMay-13Senior Loan
Franklin TempletonNew York, NYApr-11Global Fixed Income
Income Research & ManagementBoston, MAJun-07Core Bonds
Income Research & ManagementBoston, MAFeb-10TIPS
Loomis, Sayles & CompanyBoston, MAJun-89Core 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/FundLocationVintage YearInvestment Mandate
ABS CAPITAL PARTNERS IVBaltimore, MD2000Growth
ADD ONE PARTNERSSt. Peter Port, Guernsey2000Venture
AG EQUITY PARTNERSNew York, NY2001Growth Equity
PINEBRIDGE GLOBAL EMERGING MARKETS PARTNERSNew York, NY1998Buyout
ASCENT VENTURES IIBoston, MA1995Venture
ASCENT VENTURES IIIBoston, MA2000Venture
BOSTON MILLENNIA IIBoston, MA2000Venture
CHARTWELL CAPITAL IIJacksonville, FL1998Growth Equity
CRESCENDO IVPalo Alto, CA2000Venture
CRESCENT MEZZANINE PARTNERS VIIBNew York, NY2016Mezzanine
CROSS ATLANTIC TECHNOLOGYRandor, PA2000Venture
SL CAPITAL PARTNERS ESP IIAEdinburg, UK2004Buyout
SL CAPITAL PARTNERS ESP IEdinburg, UK2000Buyout
SL CAPITAL PARTNERS ESP 2006BEdinburg, UK2007Buyout
SL CAPITAL PARTNERS ESP 2008AEdinburg, UK2008Buyout
GROSVENOR OPPORTUNISTIC CREDIT FUND IIIChicago, IL2013Special Situations
HALIFAX CAPITAL PARTNERS IIWashington, D.C.2006Buyout
LAZARD TECHNOLOGY IINew York, NY2001Venture
LEXINGTON CAPITAL PARTNERS VIBNew York, NY2006Secondary Fund of Funds
LEXINGTON CAPITAL PARTNERS VIINew York, NY2009Secondary Fund of Funds
LEXINGTON CAPITAL PARTNERS VIIINew York, NY2015Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS IINew York, NY2008Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS IIINew York, NY2013Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORSNew York, NY2005Secondary Fund of Funds
LEXINGTON MIDDLE MARKET INVESTORS IVNew York, NY2017Secondary Fund of Funds
NEW MOUNTAIN PARTNERS IINew York, NY2005Buyout
NEW MOUNTAIN PARTNERS IIINew York, NY2007Buyout
NEW MOUNTAIN PARTNERS IVNew York, NY2014Buyout
OAKTREE MEZZANINE FUND IIINew York, NY2010Mezzanine
OCH ZIFF ENERGY FUNDNew York, NY2011Energy
OPUS CAPITAL VENTURE PARTNERS VMenlo Park, CA2006Venture
PACIFIC VENTURE IIIrvine, CA1998Venture
PAUL CAPITAL HEALTHCARE IIISan Francisco, CA2008Mezzanine
PHAROS CAPITAL PARTNERSDallas, TX1999Growth Equity
PHAROS CAPITAL PARTNERS IIDallas, TX2004Growth Equity
PHAROS CAPITAL PARTNERS IIIDallas, TX2013Growth Equity
QUADRANGLE CAPITAL PARTNERS IINew York, NY2005Buyout
SCP PARTNERS IWayne, PA1996Venture
SCP PARTNERS IIWayne, PA2000Venture
SIGULER GUFF BRIC OPP FUND IINew York, NY2008Buyout
SIGULER GUFF DISTRESSED OPP FUND IINew York, NY2006Distressed
SIGULER GUFF DISTRESSED OPP FUND IIINew York, NY2008Distressed
SL CAPITAL PARTNERS ESF IEdinburg, UK2014Buyout
SL CAPITAL PARTNERS SOF IIEdinburg, UK2015Secondary Fund of Funds
STERLING CAPITAL PARTNERSChicago, IL2002Growth Equity
STERLING CAPITAL PARTNERS IIChicago, IL2005Growth Equity
STERLING CAPITAL PARTNERS IIIChicago, IL2007Growth Equity
STERLING CAPITAL PARTNERS IVChicago, IL2012Growth Equity
STERLING VENTURESChicago, IL2000Venture
SVB CAPITAL PARTNERS IIMenlo Park, CA2007Venture
SVB CAPITAL PARTNERS IIIMenlo Park, CA2014Venture
SVB STRATEGIC INVESTORS IIIMenlo Park, CA2007Venture
SVB STRATEGIC INVESTORS VIIIMenlo Park, CA2016Venture
SYNDICATED COMM IVSan Francisco, CA1999Growth Equity
TCW CRESENT MEZZANINE PARTNERS VBNew York, NY2008Mezzanine
THOMAS H LEE EQUITY FUND VIBoston, MA2006Venture
THOMAS WEISEL GLOBAL GROWTH PARTNERS IISan Francisco, CA2004Secondary Fund of Funds
TOP TIER VENTURE VELOCITY FUNDSan Francisco, CA2015Secondary Fund of Funds
VANGUARD VIISan Jose, CA2000Venture
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VIPortola Valley, CA2010Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VIIPortola Valley, CA2012Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING IVPortola Valley, CA2004Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VPortola Valley, CA2006Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING IIIPortola Valley, CA2000Mezzanine
WESTERN TECHNOLOGY VENTURE LENDING + LEASING VIIIPortola Valley, CA2015Mezzanine
WELLINGTON PARTNERS IIMunich, Germany2000Venture
WLR RECOVERY FUND VNew York, NY2011Special Situations
WP+G VA VI (LIGHTSPEED)Menlo Park, CA2000Venture
Z CAPITAL SPECIAL SITUATIONS FUND IINew York, NY2013Special 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.

ManagerLocationInception DateInvestment Mandate
AFL-CIO BITWashington, D.C.2007Open Ended
Colony Investors VIILos Angeles, CA2006Opportunistic
Intercontinental Fund IIIBoston, MA2001Core Plus
Intercontinental US REIFBoston, MA2010Open Ended
JP Morgan Special Situations Property TrustNew York, NY2006Open Ended
Multi Employer Property TrustWashington, D.C.1989Open Ended
Pearlmark Aslan Realty Partners IIIChicago, IL2005Value Add
Pearlmark Mezzanine Realty Partners IIIChicago, IL2007Mezzanine
Pearlmark Multifamily PartnersChicago, IL2007Sector Focused
Senior Housing Partners Fund VMadison, NJ2015Sector Focused
Siguler Guff Distressed Real Estate Opportunity FundNew York, NY2010Opportunistic
Siguler Guff Distressed Real Estate Opportunity Fund IINew York, NY2014Opportunistic
TA Associates Realty Fund IXBoston, MA2008Value Add
TA Associates Realty Fund VIIIBoston, MA2007Value 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.

ManagerLocationInception DateInvestment Mandate
Hamilton LaneBala Cynwyd, PAJun-17Strategic Opportunities
Rock CreekWashington, D.C.Jan-11Fund of Funds
Silver CreekNew York, New YorkJun-03Fund 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.

ManagerLocationInception DateInvestment Mandate
Invesco National TrustBoston, MAJul-12Diversified Beta
PanAgora Asset ManagementBoston, MADec-16Diversified 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