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.

ManagerLocationInception DateInvestment Mandate
Invesco Investment ManagementBoston, MAJul-12Diversified 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.

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
State Street Global AdvisorsBoston, MAApr-17Large Cap Equity
State Street Global AdvisorsBoston, MAApr-15Small 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”).

ManagerLocationInception DateInvestment Mandate
AFL- CIO Housing Investment TrustWashington, D.C.Jun-94MBS
Eaton Vance ManagementBoston, MAMay-13Senior Loan
Income Research & ManagementBoston, MAFeb-10TIPS
Income Research & ManagementBoston, MAJun-07Core Bonds
Loomis, Sayles & CompanyBoston, MAJun-89Core 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.

ManagerLocationInception DateInvestment Mandate
Pension Reserves Investment ManagementBoston, MAAug-2020Emerging Markets
Sands Capital ManagementArlington, VAOct-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.

ManagerLocationInception DateInvestment Mandate
Hamilton LaneBala Cynwyd, PAMar-21Strategic Opportunities Fund VI
Hamilton LaneBala Cynwyd, PAJun-17Strategic Opportunities Fund III
Hamilton LaneBala Cynwyd, PAJan-22Strategic Opportunities Fund VII
Hamilton LaneBala Cynwyd, PAFeb-22Strategic Opportunities Fund VIII
Pension Reserves Investment ManagementBoston, MAOct-19Fund 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.

ManagerLocationInception DateInvestment Mandate
Eaton Vance International Small CapBoston, MAMay-22Small Cap International
Morgan Stanley Asset ManagementNew York, NYNov-97Large Cap Value
State Street Global AdvisorsBoston, MAMay-22Large 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 NameFund NameLocationVintage YearInvestment Mandate
Aberdeen Standard InvestmentsSL Capital Partners SOF IIEdinburg, UK2015Secondary Fund of Funds
Aberdeen Standard InvestmentsSL Capital Partners ESF IEdinburg, UK2014Buyout
Aberdeen Standard InvestmentsSL Capital Partners ESP 2008AEdinburg, UK2008Buyout
Aberdeen Standard InvestmentsSL Capital Partners ESP 2006BEdinburg, UK2007Buyout
Aberdeen Standard InvestmentsSL Capital Partners ESP IIAEdinburg, UK2004Buyout
Crescent Capital GroupCrescent Mezzanine Partners VIIBNew York, NY2016Mezzanine
Grosvenor Capital ManagementGrosvenor Opportunistic Credit Fund IIIChicago, IL2013Special Situations
Lazard Technology PartnersLazard Technology IINew York, NY2001Venture
Lexington PartnersLexington Capital Partners IXNew York, NY2019Secondary Fund of Funds
Lexington PartnersLexington Middle Market Investors IVNew York, NY2017Secondary Fund of Funds
Lexington PartnersLexington Capital Partners VIIINew York, NY2015Secondary Fund of Funds
Lexington PartnersLexington Middle Market Investors IIINew York, NY2013Secondary Fund of Funds
Lexington PartnersLexington Capital Partners VIINew York, NY2009Secondary Fund of Funds
Lexington PartnersLexington Middle Market Investors IINew York, NY2008Secondary Fund of Funds
Lexington PartnersLexington Capital Partners VIBNew York, NY2006Secondary Fund of Funds
Lexington PartnersLexington Middle Market Investors INew York, NY2005Secondary Fund of Funds
Neuberger BermanNeuberger Berman Fund IVNew York, NY2022Private Credit
New Mountain CapitalNew Mountain Partners VINew York, NY2021Buyout
New Mountain CapitalNew Mountain Partners VNew York, NY2017Buyout
New Mountain CapitalNew Mountain Partners IVNew York, NY2014Buyout
New Mountain CapitalNew Mountain Partners IIINew York, NY2007Buyout
Oaktree Capital ManagementOaktree Mezzanine Fund III – Class ANew York, NY2010Mezzanine
Oaktree Capital ManagementOaktree Mezzanine Fund III – Class BNew York, NY2010Mezzanine
Opus CapitalOpus Capital Venture Partners VMenlo Park, CA2006Venture
Pension Reserves Investment ManagementPRIT Fund Private Equity Vintage Year 2023Boston, MA2023Buyout/Venture
Pension Reserves Investment ManagementPRIT Fund Private Equity Vintage Year 2022Boston, MA2022Buyout/Venture
Pension Reserves Investment ManagementPRIT Fund Private Equity Vintage Year 2021Boston, MA2021Buyout/Venture
Pension Reserves Investment ManagementPRIT Fund Private Equity Vintage Year 2020Boston, MA2020Buyout/Venture
Pharos Capital GroupPharos Capital Partners IIIDallas, TX2013Growth Equity
Pharos Capital GroupPharos Capital Partners IIDallas, TX2004Growth Equity
Pharos Capital GroupPharos Capital Partners IDallas, TX1999Growth Equity
Quadrangle GroupQuadrangle Capital Partners IINew York, NY2005Buyout
SCP PartnersSCP Partners IIWayne, PA2000Venture
Siguler Guff & CompanySiguler Guff BRIC Opportunity Fund IINew York, NY2008Buyout
Sterling PartnersSterling Capital Partners IVChicago, IL2012Growth Equity
Sterling PartnersSterling Capital Partners IIIChicago, IL2007Growth Equity
Sterling PartnersSterling Capital Partners IIChicago, IL2005Growth Equity
Sterling PartnersSterling Capital Partners IChicago, IL2002Growth Equity
SVB CapitalSVB Strategic Investors VIIIMenlo Park, CA2016Venture
SVB CapitalSVB Capital Partners IIIMenlo Park, CA2014Venture
SVB CapitalSVB Capital Partners IIMenlo Park, CA2007Venture
SVB CapitalSVB Strategic Investors IIIMenlo Park, CA2007Venture
Top Tier Capital PartnersTop Tier Venture Velocity Fund IVSan Francisco, CA2021Venture Secondary
Top Tier Capital PartnersTop Tier Venture Velocity FundSan Francisco, CA2015Venture Secondary
Wellington PartnersWellington Partners IIAMunich, Germany2000Venture
Western Technology InvestmentsVenture Lending & Leasing XPortola Valley, CA2021Mezzanine
Western Technology InvestmentsVenture Lending & Leasing IXPortola Valley, CA2018Mezzanine
Western Technology InvestmentsVenture Lending & Leasing VIIIPortola Valley, CA2015Mezzanine
Western Technology InvestmentsVenture Lending & Leasing VIIPortola Valley, CA2012Mezzanine
Western Technology InvestmentsVenture Lending & Leasing VIPortola Valley, CA2010Mezzanine
Western Technology InvestmentsVenture Lending & Leasing VPortola Valley, CA2006Mezzanine
Western Technology InvestmentsVenture Lending & Leasing IVPortola Valley, CA2004Mezzanine
WL Ross & Co.WLR Recovery Fund VNew York, NY2011Special Situations
Z Capital GroupZ Capital Partners 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.

ManagerFundLocationInception DateInvestment Mandate
AFL-CIO Building Investment TrustAFL-CIO Building Investment TrustWashington, D.C.2007Open Ended
Bentall Green OakMulti Employer Property TrustWashington, D.C.1989Open Ended
Colony CapitalColony Investors VIILos Angeles, CA2006Opportunistic
Intercontinental Real Estate CorporationIntercontinental US REIFBoston, MA2010Open Ended
J.P. Morgan Asset ManagementJP Morgan Special Situations Property TrustNew York, NY2006Open Ended
Prudential Investment ManagementSenior Housing Partners Fund VMadison, NJ2015Sector Focused
Siguler Guff & CompanySiguler Guff Distressed Real Estate Opportunity Fund IINew York, NY2014Opportunistic
Siguler Guff & CompanySiguler Guff Distressed Real Estate Opportunity FundNew York, NY2010Opportunistic

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