Service Providers

Investment Managers

Diversified BetaDomestic EquityFixed IncomeGlobal Equity & Emerging MarketsHedge FundsInternational EquityPrivate EquityReal Estate

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 Investment Management Boston, MA Jul-12 Diversified Beta

Domestic Equity

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
State Street Global Advisors Boston, MA Apr-17 Large Cap Equity
State Street Global Advisors Boston, MA Apr-15 Small Cap Value

Fixed Income

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 Housing Investment Trust Washington, D.C. Jun-94 MBS
Eaton Vance Management Boston, MA May-13 Senior Loan
Income Research & Management Boston, MA Feb-10 TIPS
Income Research & Management Boston, MA Jun-07 Core Bonds
Loomis, Sayles & Company Boston, MA Jun-89 Core Plus

Global Equity & Emerging Markets

The MBTA Retirement Fund measures global equity against the MSCI ALL Country World Index and emerging markets against the MSCI Emerging Markets Index.

Manager Location Inception Date Investment Mandate
Pension Reserves Investment Management Boston, MA Aug-2020 Emerging Markets
Sands Capital Management Arlington, VA Oct-12* Growth
*Original Large Cap Growth Mandate Inception March 2004

Hedge Funds – Fund of 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 Mar-21 Strategic Opportunities Fund VI
Hamilton Lane Bala Cynwyd, PA Jun-17 Strategic Opportunities Fund III
Hamilton Lane Bala Cynwyd, PA Jan-22 Strategic Opportunities Fund VII
Hamilton Lane Bala Cynwyd, PA Feb-22 Strategic Opportunities Fund VIII
Pension Reserves Investment Management Boston, MA Oct-19 Fund of Funds

International Equity

The international equity managers are benchmarked against the MSCI EAFE index, which includes the developed markets of Europe, Australia and the Far East. International small cap managers are benchmarked against the MSCI World Ex US Small Cap index. 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
Eaton Vance International Small Cap Boston, MA May-22 Small Cap International
Morgan Stanley Asset Management New York, NY Nov-97 Large Cap Value
State Street Global Advisors Boston, MA May-22 Large Cap

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 Name Fund Name Location Vintage Year Investment Mandate
Aberdeen Standard Investments SL Capital Partners SOF II Edinburg, UK 2015 Secondary Fund of Funds
Aberdeen Standard Investments SL Capital Partners ESF I Edinburg, UK 2014 Buyout
Aberdeen Standard Investments SL Capital Partners ESP 2008A Edinburg, UK 2008 Buyout
Aberdeen Standard Investments SL Capital Partners ESP 2006B Edinburg, UK 2007 Buyout
Aberdeen Standard Investments SL Capital Partners ESP IIA Edinburg, UK 2004 Buyout
Crescent Capital Group Crescent Mezzanine Partners VIIB New York, NY 2016 Mezzanine
Grosvenor Capital Management Grosvenor Opportunistic Credit Fund III Chicago, IL 2013 Special Situations
Lazard Technology Partners Lazard Technology II New York, NY 2001 Venture
Lexington Partners Lexington Capital Partners IX New York, NY 2019 Secondary Fund of Funds
Lexington Partners Lexington Middle Market Investors IV New York, NY 2017 Secondary Fund of Funds
Lexington Partners Lexington Capital Partners VIII New York, NY 2015 Secondary Fund of Funds
Lexington Partners Lexington Middle Market Investors III New York, NY 2013 Secondary Fund of Funds
Lexington Partners Lexington Capital Partners VII New York, NY 2009 Secondary Fund of Funds
Lexington Partners Lexington Middle Market Investors II New York, NY 2008 Secondary Fund of Funds
Lexington Partners Lexington Capital Partners VIB New York, NY 2006 Secondary Fund of Funds
Lexington Partners Lexington Middle Market Investors I New York, NY 2005 Secondary Fund of Funds
Neuberger Berman Neuberger Berman Fund IV New York, NY 2022 Private Credit
New Mountain Capital New Mountain Partners VI New York, NY 2021 Buyout
New Mountain Capital New Mountain Partners V New York, NY 2017 Buyout
New Mountain Capital New Mountain Partners IV New York, NY 2014 Buyout
New Mountain Capital New Mountain Partners III New York, NY 2007 Buyout
Oaktree Capital Management Oaktree Mezzanine Fund III – Class A New York, NY 2010 Mezzanine
Oaktree Capital Management Oaktree Mezzanine Fund III – Class B New York, NY 2010 Mezzanine
Opus Capital Opus Capital Venture Partners V Menlo Park, CA 2006 Venture
Pension Reserves Investment Management PRIT Fund Private Equity Vintage Year 2023 Boston, MA 2023 Buyout/Venture
Pension Reserves Investment Management PRIT Fund Private Equity Vintage Year 2022 Boston, MA 2022 Buyout/Venture
Pension Reserves Investment Management PRIT Fund Private Equity Vintage Year 2021 Boston, MA 2021 Buyout/Venture
Pension Reserves Investment Management PRIT Fund Private Equity Vintage Year 2020 Boston, MA 2020 Buyout/Venture
Pharos Capital Group Pharos Capital Partners III Dallas, TX 2013 Growth Equity
Pharos Capital Group Pharos Capital Partners II Dallas, TX 2004 Growth Equity
Pharos Capital Group Pharos Capital Partners I Dallas, TX 1999 Growth Equity
Quadrangle Group Quadrangle Capital Partners II New York, NY 2005 Buyout
SCP Partners SCP Partners II Wayne, PA 2000 Venture
Siguler Guff & Company Siguler Guff BRIC Opportunity Fund II New York, NY 2008 Buyout
Sterling Partners Sterling Capital Partners IV Chicago, IL 2012 Growth Equity
Sterling Partners Sterling Capital Partners III Chicago, IL 2007 Growth Equity
Sterling Partners Sterling Capital Partners II Chicago, IL 2005 Growth Equity
Sterling Partners Sterling Capital Partners I Chicago, IL 2002 Growth Equity
SVB Capital SVB Strategic Investors VIII Menlo Park, CA 2016 Venture
SVB Capital SVB Capital Partners III Menlo Park, CA 2014 Venture
SVB Capital SVB Capital Partners II Menlo Park, CA 2007 Venture
SVB Capital SVB Strategic Investors III Menlo Park, CA 2007 Venture
Top Tier Capital Partners Top Tier Venture Velocity Fund IV San Francisco, CA 2021 Venture Secondary
Top Tier Capital Partners Top Tier Venture Velocity Fund San Francisco, CA 2015 Venture Secondary
Wellington Partners Wellington Partners IIA Munich, Germany 2000 Venture
Western Technology Investments Venture Lending & Leasing X Portola Valley, CA 2021 Mezzanine
Western Technology Investments Venture Lending & Leasing IX Portola Valley, CA 2018 Mezzanine
Western Technology Investments Venture Lending & Leasing VIII Portola Valley, CA 2015 Mezzanine
Western Technology Investments Venture Lending & Leasing VII Portola Valley, CA 2012 Mezzanine
Western Technology Investments Venture Lending & Leasing VI Portola Valley, CA 2010 Mezzanine
Western Technology Investments Venture Lending & Leasing V Portola Valley, CA 2006 Mezzanine
Western Technology Investments Venture Lending & Leasing IV Portola Valley, CA 2004 Mezzanine
WL Ross & Co. WLR Recovery Fund V New York, NY 2011 Special Situations
Z Capital Group Z Capital Partners 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 Fund Location Inception Date Investment Mandate
AFL-CIO Building Investment Trust AFL-CIO Building Investment Trust Washington, D.C. 2007 Open Ended
Bentall Green Oak Multi Employer Property Trust Washington, D.C. 1989 Open Ended
Colony Capital Colony Investors VII Los Angeles, CA 2006 Opportunistic
Intercontinental Real Estate Corporation Intercontinental US REIF Boston, MA 2010 Open Ended
J.P. Morgan Asset Management JP Morgan Special Situations Property Trust New York, NY 2006 Open Ended
Prudential Investment Management Senior Housing Partners Fund V Madison, NJ 2015 Sector Focused
Siguler Guff & Company Siguler Guff Distressed Real Estate Opportunity Fund II New York, NY 2014 Opportunistic
Siguler Guff & Company Siguler Guff Distressed Real Estate Opportunity Fund New York, NY 2010 Opportunistic

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

Buck Global, 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