annual review of mta sponsored pension & retirement...

Annual Review of MTA SponsoredPension & Retirement Funds

As of December 31, 2018

TABLE OF CONTENTS

2

PageExecutive Summary 3Overview – MTA Sponsored and Multi-Employer Plans 4Market Outlook 5Asset Allocation & Performance 6-7Assumptions & Funding Level 8-9MWBE Participation 10-12Appendix 13-21

3

Executive SummaryMTA Sponsored Pension Plans on solid footing• Complex Plans that are conservatively administered (i.e. ADC, Return Assumption, Amortization)• MTA Defined Benefit Plan: $4.1 billion, 78.2% Funded• LIRR Additional Plan: $951.3 million, 64.6% Funded• MaBSTOA: $2.9 billion, 79.4% Funded• Combined pension plans assets under management grew 0.67% year over year • OPEB Trust: $351.4 millionExtreme weak performance in Q4 of 2018 erased all of 2018 market gains • The Plans are designed to perform equal to or better than a traditional 60% Equity / 40% Bond

benchmark over time, while demonstrating less volatility (risk)• For 2018:

• MTA Defined Benefit Plan, LIRR Additional Plan returned -2.6% (net)• MaBSTOA returned -2.3% (net)• OPEB Trust returned -5.1% (net)

• Underperformance driven by financial markets turbulence in fourth quarter of 2018• Portfolio remains conservatively managed, with 60% less volatility (risk) than the market benchmark• 2019 YTD returns as of March 31, 2019:

• MTA Defined Benefit Plan, LIRR Additional Plan returned +6.6% (net)• MaBSTOA returned +6.5% (net)• OPEB Trust returned +8.3% (net)

MTA Deferred Compensation Plan (401k/457)• Ended year at $6.2 billion in assets and 54,070 active participants• Year over year assets under management fell by 0.5%• Participation rate 72.7% amongst highest in public plan peer group• Plan design and investment lineup continually developed to enhance participant experience

4

Overview – MTA Sponsored and Multi-Employer PlansPension Plan

# of Active Members3

2018 Pension Contributions -Actual ($ mm)

2018 Pension Cost - Adopted

Budget ($ mm) 1,2

Assets (as of 12/31/18)

MTA Sponsored Defined Benefit PlansMTA DB Plan 18,631 $332 $339 $4.1 billion MaBSTOA 8,686 203 213 2.9 billionLIRR Additional Plan5 84 59 60 $951.3 million

Total 27,401 $594 $612 $7.95 billion

MTA Sponsored Defined Contribution Plans

MTA Deferred Compensation Program (401k & 457) 53,291 $0 $0 $6.2 billionMNR 401(k) 495 3 3TCU/HQ 401(k) 284

5

Market Overview & OutlookEquity Markets were negative for the year•Global equity experienced steep selloff during the fourth quarter, driving 2018 calendar year returns negative•The S&P 500’s decade-long winning streak came to an end, returning -13.5% in the fourth quarter and -4.4% in 2018•Small cap stock experienced a more significant selloff, returning -20.2% in the fourth quarter and -11.0% for 2018•International markets were also negative in 2018, with MSCI EAFE returning -13.8%•In line with the rest of the world, emerging markets were also negative, with the MSCI EM Index returning -14.6%

Fixed Income was mixed for the year•Risky assets underperformed safe assets•In the US, the Aggregate Bond Index returned 0.0% with Treasuries and Mortgages outperforming US Investment Grade Credit•High yield underperformed safe assets as spreads widened in the fourth quarter, returning -4.5% in 2018

Outlook for 2019•Market dynamics shifted in 2018, with Fed policy and US-China trade tensions coming to prominence •US economy has entered a late-cycle market environment; this transition is likely accompanied by a more risk-adverse investmentoutlook as economic risks become more pronounced•Safe-haven fixed income exposure is an essential asset class exposure as the potential for an adverse economic outcome appears to have expanded•Emerging market equity and debt remain attractive from a total return perspective

6

MTA Sponsored Plans – Asset Allocation (12/31/18)

MTA DB & MaBSTOA Target

Allocation

MTA DBActual

MaBSTOAActual

MTA OPEBTarget Allocation

MTA OPEB Actual

Equities 33.0% 28.8% 28.7% 35.0% 38.7%Domestic Equity 15.0% 14.4% 14.2%

Large Cap 10.0% 9.4% 9.2%Small Cap 5.0% 4.9% 5.0%

International Equity 18.0% 14.4% 14.4%Developed Markets 13.0% 11.6% 11.6%Emerging Markets 5.0% 2.8% 2.9%

Fixed Income 16.0% 15.3% 14.3% 18.0% 17.0%Global Asset Allocation* 15.0% 14.2% 14.0% 30.0% 28.5%Absolute Return 14.0% 13.0% 14.5% 12.0% 9.6%Real Assets 4.0% 5.4% 5.0% 5.0% 4.0%Real Estate 5.0% 5.1% 4.5%Opportunistic 6.0% 9.6% 10.2%Private Equity 7.0% 5.0% 5.5%Cash** 0.0% 3.6% 3.3% 0.0% 2.2%

* Global Asset Allocation Managers may invest across various liquid asset classes including stocks, bonds and commodities** MTA DB and MaBSTOA utilize an overlay manager (Parametric Clifton) in an effort to ensure that cash remains invested

7

MTA Sponsored Plans – Historical Performance

MaBSTOA

MTA

Median

60/40

4.5%

5.0%

5.5%

6.0%

6.5%

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5%

Annu

aliz

ed R

etur

n

Risk (Standard Deviation)

MaBSTOA

MTA

Median

60/40

3.0%

3.5%

4.0%

4.5%

5.0%

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0%

Annu

aliz

ed R

etur

n


MaBSTOAMTA

Median

60/40

5.0%

6.0%

7.0%

8.0%

4.0% 4.5% 5.0% 5.5% 6.0% 6.5% 7.0% 7.5%

Annu

aliz

ed R

etur

n


MaBSTOA

MTA

Median

60/40

6.0%

7.0%

8.0%

9.0%

6.0% 6.5% 7.0% 7.5% 8.0% 8.5% 9.0% 9.5%

Annu

aliz

ed R

etur

n


10 Year Risk-Return Chart7 Year Risk-Return Chart

5 Year Risk-Return Chart3 Year Risk-Return Chart

8

MTA Sponsored Plans – Investment Rate Return Assumptions

Investment Rate (net of fees)

2012 2013 2014 2015 2016 2017 2018Pension Plan

LIRR - Additional Plan 8.0% 7.5% 7.0% 7.0% 7.0% 7.0% 7.0%

MaBSTOA 8.0% 7.5% 7.0% 7.0% 7.0% 7.0% 7.0%

MTA DB Plan 8.0% 7.5% 7.0% 7.0% 7.0% 7.0% 7.0%

NYSLERS 7.5% 7.5% 7.0% 7.0%NYCERS 7.0% 7.0% 7.0% 7.0%

9

MTA Sponsored Plans – Funding Status

26.9%

64.6% 53.4%

79.4%

67.4%78.2%

0%

20%

40%

60%

80%

100%

1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018

Fund

ed R

atio

Date of Valuation

LIRR Additional Plan MaBSTOA MTA DB

1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018LIRR Additional Plan 26.9 28.2 24.8 24.8 30.9 48.8 46.0 50.8 64.6MaBSTOA 53.4 60.6 55.7 60.1 65.2 69.3 67.3 72.1 79.4MTA DB 67.4 72.7 65.8 68.9 71.6 72.5 68.6 71.1 78.2

PresenterPresentation NotesAlthough our plans are not fully funded the increase in the funding level has been significant in the past 10 years. Since the inception of the MTA DB plan 1994 and since 1989 when the OA Pension Plan and Trust were established and we moved away from a “pay as you go plan) the MTA has always met its obligation and has always contributed the annual Actuarially Determined Contribution

10

MTA Sponsored Plans – MWBE ParticipationNew England Pension Consultants (NEPC) Diversity Advisory Committee

• In the interest of promoting equal access to all who seek to provide financial services to the MTA sponsored defined benefit plans, the MaBSTOA Investment Committee and the MTA Defined Benefit Pension Plan Board of Managers of Pensions has directed its investment advisor, NEPC, to review whether minority-owned and women-owned investment management firms are qualified in connection with every investment manager search that the investment advisor performs.

• NEPC has an in-house committee that is tasked with identifying emerging managers across all asset classes

• NEPC’s committee is made up of 14 consultant and research professionals

• The goals of the Committee include:– Proactively expand selection and recommendation of MWDBE Managers– Identify top-tier firms across all asset classes (public/alternatives)– Maintain a database of viable emerging managers– Thought leadership in emerging manager research– Increase utilization of emerging managers within our client’s portfolio

11

MTA Sponsored Plans – MWBE ParticipationAs of December 31, 2018

Executive SummaryCombined Plans• Total assets managed by MWBEs: $1.062 billion; or 14% of total assets• Majority of assets are in traditional asset classes• Traditional assets managed by MWBEs: $984 million; or 21% of traditional assets

• MWBE firms manage• 53% of US Equities• 31% of Real Estate• 27% of Non-US Equities• 9% of Fixed Income• 1% of Opportunistic

• Alternative Investments managed by MWBE’s: $77.7 million; or 3% of alternative investments• Continue to actively source new relationships and investment managers

• Engaged with investment consultants, industry groups, custodians, and brokers

12

MTA Sponsored Plans – MWBE ParticipationAs of December 31, 2018

Non-MWBE Managed Assets

(Traditional), $3,615,454,505 , 79%

MWBE Managed Assets (Traditional), $984,518,633 , 21%

Combined Plans - Traditional Investments

Chart1

Non-MWBE Managed Assets

MWBE Managed Assets

Combined Plans - Total Assets

6346072775

1062250814

MTA

Ending December 31, 2016Ending December 31, 2016

Market Value($)Market Value($)

__

Composite with Overlay*$ 4,541,374,934Composite with Overlay*$ 4,070,063,222

Composite with Cash$ 4,541,374,934Composite with Cash$ 4,070,063,222

Manager Composite$ 4,372,660,290Manager Composite$ 3,998,906,191

Rhumbline$ 132,716,400Rhumbline$ 135,512,822

Independent Franchise Partners$ 130,370,995Independent Franchise Partners$ 119,442,105

Lazard US Equity Concentrated$ 159,452,180Lazard US Equity Concentrated$ 152,118,438

Robeco Boston PartnersRobeco Boston Partners$ 19,446

Earnest Partners$ 109,030,193Earnest Partners$ 106,617,358

Atlanta$ 125,151,909Atlanta$ 114,016,527

Sanderson International$ 177,019,680Sanderson International$ 97,838,869

Johnston International$ 166,816,106Johnston International$ 133,285,769

BlackRock$ 214,040,699BlackRock$ 143,238,482

Eaton Vance$ 62,945,831Eaton Vance$ 57,880,953

Lazard$ 82,178,366Lazard$ 67,032,885

Baird$ 151,958,460Baird$ 154,679,397

Crescent High Income Fund$ 95,557,754Crescent High Income Fund$ 89,904,233

GAM Unconstrained Bond$ 215,100,681GAM Unconstrained Bond$ 203,966,105

Advent$ 63,187,271Advent$ 60,133,644

Wellington Blended Opp. EMD$ 78,204,372Wellington Blended Opp. EMD$ 74,998,607

SSgA Long Treasury Index$ 21,876,354SSgA Long Treasury Index$ 19,346,265

Vanguard TIPS Index$ 75,865,576Vanguard TIPS Index$ 56,374,464

PIMCO Unconstrained Bond$ 7,643PIMCO Unconstrained Bond$ 8,013

Bridgewater Pure Alpha$ 90,413,400Bridgewater Pure Alpha$ 80,562,438

Bridgewater Pure Alpha Major Markets$ 12,620,708Bridgewater Pure Alpha Major Markets$ 10,806,980

Allianz$ 115,342,207Allianz$ 108,163,604

Canyon$ 90,988,880Canyon$ 84,978,789

Passport$ 45,259,204Passport$ 55,488,531

LibreMax Master Fund$ 83,303,313LibreMax Master Fund$ 77,049,914

Beacon Light$ 34,439,612Beacon Light$ 30,885,917

Senator$ 67,848,035Senator$ 64,551,788

Makuria63875193Makuria$ 60,000,000

Redeeming Managers*$ 5,020,559Redeeming Managers*$ 4,995,233

Wellington DIH116,900,189Wellington DIH$ 111,003,268

NGP Natural Resources X11,359,576NGP Natural Resources X$ 14,227,927

NGP Natural Resources XI18,022,059NGP Natural Resources XI$ 8,269,881

EIG Energy8,467,443EIG Energy$ 9,578,705

EIG Energy XVI15,810,940EIG Energy XVI$ 9,228,039

Arclight20,896,140Arclight$ 12,059,001

JP Morgan Real Estate98,954,566JP Morgan Real Estate$ 93,852,717

Rhumbline47,441,035

Siguler Guff Distressed19,924,148Siguler Guff Distressed$ 21,680,727

Siguler Guff Distressed II39,073,729Siguler Guff Distressed II$ 35,098,659

Siguler II Co-Inv21,871,287Siguler II Co-Inv$ 15,549,072

PIMCO DISCO II$ 62,252,203PIMCO DISCO II$ 63,230,829

Perella Weinberg Fund II$ 7,045,901Perella Weinberg Fund II$ 7,045,901

Perella Weinberg Fund III$ 35,474,965Perella Weinberg Fund III$ 35,474,965

Entrust Special Opps Fund II$ 20,527,917Entrust Special Opps Fund II$ 20,527,917

Crescent Direct Lending$ 26,238,333Crescent Direct Lending$ 26,238,333

Park Square$ 33,066,023Park Square$ 36,629,904

Orchard Landmark$ 105,546,535Orchard Landmark$ 107,169,954

MC-Seamax$ 28,450,038MC-Seamax$ 34,362,929

Gramercy$ 38,647,185Gramercy$ 38,528,688

PIMCO All Asset$ 104,412,309PIMCO All Asset$ 106,772,786

Bridgewater All Weather$ 177,600,052Bridgewater All Weather$ 181,887,473

Wellington Opportunistic$ 168,265,263Wellington Opportunistic$ 174,887,987

Mellon Dynamic Growth$ 192,218,425Mellon Dynamic Growth$ 195,413,733

Wellington Global Managed Risk$ 126,116,213Wellington Global Managed Risk$ 128,611,444

Private Equity$ 149,321,988Private Equity$ 147,677,764

JP Morgan Chase$ 42,021,831JP Morgan Chase$ 43,682,726

Williams Capital$ 10,019,824Williams Capital$ 10,019,824

The Clifton Group PIOS$ 7,496,623The Clifton Group PIOS$ 8,817,627

The Clifton Group International Overlay$ 9,152,314The Clifton Group International Overlay$ 8,636,854

Clifton Overlay$ 59,538,278Clifton Overlay$ 62,520,177

XXXXXXXXXX

*One or more accounts have been excluded from the composite for the purposes of performance calculations and market value.*One or more accounts have been excluded from the composite for the purposes of performance calculations and market value.

MaBSTOA

Ending June 30, 2016Ending July 31, 2016


__

Composite with Cash*$ 2,347,315,542Composite with Cash*$ 2,406,244,464

Composite with Overlay$ 2,347,315,542Composite with Overlay$ 2,406,244,464





Times Square$ 54,005,497Times Square$ 56,118,400

Pzena$ 59,278,442Pzena$ 62,259,199

Mercator*$ 238,244Mercator*$ 239,340





Lazard$ 45,933,378Lazard$ 48,488,709

Baird$ 61,388,926Baird$ 61,878,907




Advent$ 28,917,055Advent$ 29,797,342





Allianz$ 79,308,040Allianz$ 79,673,076

Canyon$ 33,872,539Canyon$ 34,605,311




Senator$ 37,000,000Senator$ 37,911,368

MaMakuria$ 35,000,000


Wellington DIH$ 50,115,954Wellington DIH$ 50,850,671

NGP Natural Resources X$ 9,390,432NGP Natural Resources X$ 9,390,432

NGP Natural Resources XI$ 4,274,388NGP Natural Resources XI$ 5,273,550

EIG Energy$ 6,385,611EIG Energy$ 6,385,611

EIG Energy XVI$ 6,152,026EIG Energy XVI$ 6,152,026

Arclight$ 6,981,528Arclight$ 6,981,528

Siguler Guff Distressed$ 20,133,266Siguler Guff Distressed$ 20,013,260

Siguler Guff Distressed II$ 21,813,696Siguler Guff Distressed II$ 21,787,431

Siguler II Co-Inv$ 8,772,152Siguler II Co-Inv$ 9,693,453

UBS Real Estate$ 20,193,715UBS Real Estate$ 20,042,994

JP Morgan Real Estate$ 20,666,256JP Morgan Real Estate$ 20,778,473





















XXXXXXXXXX


Sheet1

Bridgewater81,392,37220.31.2-6.7-6.1-0.20.66.45.68-Feb

Bridgewater11,016,18131-Dec1-Jan2.1-4.9-1.82-Jan----3.213-Sep

Allianz110,324,0182.71.12.57-Jan14-Jan9.514.28.18.29-Jun

Canyon86,599,2792.20.64.17.264.1----4.113-Oct

Passport51,639,7871.3-2.8-6.4-13.4-17.91-Jan-----0.313-Oct

LibreMax78,893,91221.13.31-Jan-0.9-------115-Aug

Beacon31,377,8230.8-13.8----------4.616-Apr

Senator65,830,3861.60.64.5----------4.516-Jun

Makuria60,955,6121.50.51.6----------1-Jan16-Jul

Redeeming5,025,083

As of Dec 31 2018

MaBSTOAEnding December 31, 2018MTADBPPEnding December 31, 2018


__

Composite with Cash*2,820,078,210Composite with Overlay*4,852,449,2485051148728

Composite with Overlay2,820,078,210Composite with Cash4,852,449,248-198,699,480

MTADBPPMaBSTOA

Manager Composite2,728,221,862Manager Composite4,680,101,727$ 7,408,323,589

MaBSTOA MWBE Investment ManagersMTADB MWBE Investment ManagersTotal

Rhumbline85,697,233Large Cap EquityRhumbline145,815,017Large Cap Equity231,512,250Large Cap Equity456,721,123.00260,554,166.00

Independent Franchise Partners88,577,288Large Cap EquityIndependent Franchise Partners144,902,784Large Cap Equity233,480,072Small Cap Equity241,666,977.00140,565,294.00

Advent32,405,117Traditional Fixed IncomeAdvent65,325,718Traditional Fixed Income97,730,835Inter'l Equity564,080,639.00326,185,664.00

Earnest Partners44,717,132Small Cap EquityEarnest Partners77,467,315Small Cap Equity122,184,447Emerging Equity134,619,843.0081,141,683.00

Johnston International123,032,138Inter'l EquityJohnston International176,578,891Inter'l Equity299,611,029Long/Short Equity133,006,505.0078,223,459.00

VWH Partners1,896,163Opp CreditVWH Partners3,093,740Opp Credit4,989,903Opp Equity46,052,262.0030,701,507.00

Private Equity222,652,027.00142,305,379.00

Non-MWBE Investment Managers (Traditional)Non-MWBE Investment Managers (Traditional)Traditional Fixed Income741,066,154.00401,803,197.00

Lazard US Equity Concentrated86,279,645Large Cap EquityLazard US Equity Concentrated166,003,322Large Cap EquityLong/Short Credit255,266,300.00143,842,914.00

Pzena43,868,651Small Cap EquityPzena73,385,794Small Cap EquityOpp Credit421,651,007.00257,427,103.00

Atlanta51,979,511Small Cap EquityAtlanta90,813,868Small Cap EquityPrivate Debt21,827,165.0013,798,933.00

Sanderson International128,362,556Inter'l EquitySanderson International198,716,388Inter'l EquityReal Assets506,713,901.00270,317,669.00

BlackRock Hedged Index74,666,361Inter'l EquityBlackRock188,785,360Inter'l EquityGlobal Asset690,524,150.00395,091,204.00

Mercator124,609Inter'l EquityGlobal Macro244,253,674.00186,263,690.00

Eaton Vance43,228,693Emerging EquityEaton Vance63,186,967Emerging EquityOther172,347,521.0091,856,348.00

Lazard37,912,990Emerging EquityLazard71,432,876Emerging Equity

Baird164,523,680Traditional Fixed IncomeBaird297,563,566Traditional Fixed IncomeTotal4,852,449,248.002,820,078,210.00

Crescent High Income Fund59,832,119Traditional Fixed IncomeCrescent High Income Fund96,621,297Traditional Fixed Income

GAM Unconstrained Bond35,095,377Traditional Fixed IncomeGAM Unconstrained Bond70,096,222Traditional Fixed Income

Wellington Blended Opp. EMD46,604,022Traditional Fixed IncomeWellington Blended Opp. EMD89,757,016Traditional Fixed Income

SSgA Long Treasury Index19,682,345Traditional Fixed IncomeSSgA Long Treasury Index33,476,986Traditional Fixed Income

Vanguard TIPS Index43,660,536Traditional Fixed IncomeVanguard TIPS Index88,217,183Traditional Fixed Income

PIMCO Unconstrained Bond1Traditional Fixed IncomePIMCO Unconstrained Bond8,166Traditional Fixed Income

PIMCO All Asset56,824,585Global AssetPIMCO All Asset117,106,093Global Asset

Bridgewater All Weather71,987,274Global AssetBridgewater All Weather122,948,478Global Asset

Wellington Opportunistic105,887,711Global AssetWellington Opportunistic172,649,803Global Asset

Mellon Dynamic Growth78,244,230Global AssetMellon Dynamic Growth147,968,521Global Asset

Wellington Global Managed Risk82,147,404Global AssetWellington Global Managed Risk129,851,255Global Asset

SSgA Real Asset NL Fund51,738,302Real AssetsSSgA Real Asset NL Fund114,214,742Real Assets

State Street TransitionState Street Transition

Alternative InvestmentsAlternative Investments

Bridgewater Pure Alpha96,755,304Global MacroBridgewater Pure Alpha99,120,876Global Macro

Global MacroBridgewater Pure Alpha Major Markets13,054,657Global Macro

Allianz89,471,969Global MacroAllianz131,997,481Global Macro

Canyon47,540,967Long/Short CreditCanyon96,813,610Long/Short Credit

LibreMax Master Fund59,777,367Long/Short CreditLibreMax Master Fund95,839,125Long/Short Credit

Senator39,431,503Long/Short EquitySenator67,140,127Long/Short Equity

Beacon Light38,791,956Long/Short EquityBeacon Light65,866,378Long/Short Equity

Makuria36,524,580Long/Short CreditMakuria62,613,565Long/Short Credit

Redeeming Managers*36,417Global MacroRedeeming Managers*80,660Global Macro

Private Debt13,798,933Private DebtPrivate Debt21,827,165

Private Real Assets90,667,333Real AssetsPrivate Real Assets146,028,826Real Assets

Private Real Estate57,447,583Real AssetsPrivate Real Estate85,761,570Real Assets

UBS Real Estate21,385,591Real Assets

JP Morgan Real Estate24,594,202Real AssetsJP Morgan Real Estate112,451,143Real Assets160,708,7630.3002799542

Rhumbline FTSE Equity24,484,658Real AssetsRhumbline FTSE Equity48,257,620Real Assets70,464,4510.3474753248

PIMCO DISCO II32,727,478Opp CreditPIMCO DISCO II61,224,686Opp Credit

Orchard Landmark90,148,369Opp CreditOrchard Landmark145,021,329Opp Credit

Gramercy43,986,132Opp CreditGramercy73,345,232Opp Credit

Orchard Taiga14,512,241Opp CreditOrchard Taiga25,396,422Opp Credit

Perella Weinberg Fund II2,210,558Opp CreditPerella Weinberg Fund II3,890,580Opp Credit

Perella Weinberg Fund III12,408,040Opp CreditPerella Weinberg Fund III20,163,064Opp Credit

Entrust Special Opps Fund II6,320,857Opp CreditEntrust Special Opps Fund II6,847,579Opp Credit

Crescent Direct Lending10,135,894Opp CreditCrescent Direct Lending15,203,853Opp Credit

Park Square II26,803,807Opp CreditPark Square II40,205,703Opp Credit

MC-Seamax30,701,507Opp EquityMC-Seamax46,052,262Opp Equity

Carlyle (CASCO)6,561,788Opp CreditCarlyle (CASCO)10,936,314Opp Credit3,093,7401,896,1634,989,903

Park Square III9,715,776Opp CreditPark Square III16,322,505Opp Credit464,609,529286,232,447750,841,976

Private Equity142,305,379Private EquityPrivate Equity222,652,0271%1%1%

Total Alternative Investments$ 1,071,142,352Total Alternative Investments$ 1,737,208,099

Cash & Overlay ProgramsCash & Overlay Programs

Other

JP Morgan Chase52,006,265OtherJP Morgan Chase132,720,254Other

Williams Capital10,253,536OtherWilliams Capital10,256,487Other

The Clifton Group PIOS10,930,150OtherThe Clifton Group PIOS15,516,654Other

The Clifton Group International Overlay18,666,397OtherThe Clifton Group International Overlay13,854,126

Total Assets$ 2,728,221,862Total Assets$ 4,680,101,727Total Assets$ 7,408,323,589

Total Traditional Assets$ 1,657,079,510Total Traditional Assets$ 2,942,893,628Total Traditional Assets$ 4,599,973,138

MWBE-Traditional$ 374,428,908MWBE-Traditional$ 610,089,725MWBE-Traditional$ 984,518,633

MWBE % of Traditional23%MWBE % of Traditional21%MWBE % of Traditional21%

MWBE % of Total14%MWBE % of Total13%MWBE % of Total13%1,062,250,814.00

Total Alternative Investments$ 1,071,142,352Total Alternative Investments$ 1,737,208,099Total Alternative Investments$ 2,808,350,4510.14

MWBE - Alternative Investment$ 26,380,821MWBE - Alternative Investment$ 51,351,360MWBE - Alternative Investment$ 77,732,181

MWBE % of Alternative Investments2%MWBE % of Alternative Investments3%MWBE % of Alternative Investments3%

MWBE US Equity$ 218,991,653MWBE US Equity$ 368,185,116MWBE US Equity$ 587,176,769.001,099,507,560.00

% of US Equity55%% of US Equity53%% of US Equity53%

MWBE Non-US Equity$ 123,032,138MWBE Non-US Equity$ 176,578,891MWBE Non-US Equity$ 299,611,0291,106,027,829.00

% of Non-US Equity30%% of Non-US Equity25%% of Non-US Equity27%

MWBE Fixed Income$ 32,405,117MWBE Fixed Income$ 65,325,718MWBE Fixed Income$ 97,730,8351,142,869,351.00

% of Fixed Income8%% of Fixed Income9%% of Fixed Income9%

$ 400,809,729$ 661,441,08577,732,181374,382,3670.2076277834

$ 400,809,729$ 661,441,085

3

53

26

9

91

Agnes O'Hara:Alternative


MTA DB Plan Charts

Investment Manager Composite$ 4,680,101,727% of US Equity53%

Non-MWBE Managed Assets$ 4,018,660,642% of Non-US Equity25%

MWBE Managed Assets$ 661,441,085% of Fixed Income9%

Total Traditional Assets$ 2,942,893,628% of Opportunistic1%

Non-MWBE Managed Assets (Traditional)$ 2,332,803,903% of Private Equity0%

MWBE Managed Assets (Traditional)$ 610,089,725% of Real Estate30%

MWBE % of Traditional21%

MWBE % of Total14%

Non-MWBE Managed Assets (Alternatives)$ 1,685,856,739

MWBE Managed Assets (Alternatives)51,351,3603%

160,236,189

159,084,591

66,866,991

88,389,989

183,980,065

2,808,349

52,377,727

713,743,901

MTA DB Plan Charts

MTA Defined Benefit - Total Assets

MaBSTOA Plan Charts

MTA Defined Benefit - Traditional Investments

Combined Plans Charts

MTA Defined Benefit - Alternative Investments

MWBE Managed Assets by Asset Class




Total Traditional Assets$ 1,657,079,510% of Opportunistc1%




MWBE % of Total15%


MWBE Managed Assets (Alternatives)26,380,821

MaBSTOA - Total Assets

MaBSTOA - Traditional Investments

MaBSTOA - Alternative Investments




MWBE Managed Assets$ 1,062,250,814% of Fixed Income9%





MWBE % of Total14%121%


MWBE Managed Assets (Alternatives)77,732,1810.03

Real Estate

160,708,763

70,464,451

231,173,214

72,742,278

0.3146656861

Commentary & Changes



Combined Plans- Alternative Investments


Chart1

Non-MWBE Managed Assets (Alternatives)

MWBE Managed Assets (Alternatives)


2730618270

77732181

MTA



__









Atlanta$ 125,151,909Atlanta$ 114,016,527





Lazard$ 82,178,366Lazard$ 67,032,885

Baird$ 151,958,460Baird$ 154,679,397



Advent$ 63,187,271Advent$ 60,133,644







Allianz$ 115,342,207Allianz$ 108,163,604

Canyon$ 90,988,880Canyon$ 84,978,789




Senator$ 67,848,035Senator$ 64,551,788










Rhumbline47,441,035
























XXXXXXXXXX


MaBSTOA



__








Pzena$ 59,278,442Pzena$ 62,259,199






Lazard$ 45,933,378Lazard$ 48,488,709

Baird$ 61,388,926Baird$ 61,878,907




Advent$ 28,917,055Advent$ 29,797,342





Allianz$ 79,308,040Allianz$ 79,673,076

Canyon$ 33,872,539Canyon$ 34,605,311




Senator$ 37,000,000Senator$ 37,911,368


































XXXXXXXXXX


Sheet1

Bridgewater81,392,37220.31.2-6.7-6.1-0.20.66.45.68-Feb



Canyon86,599,2792.20.64.17.264.1----4.113-Oct

Passport51,639,7871.3-2.8-6.4-13.4-17.91-Jan-----0.313-Oct

LibreMax78,893,91221.13.31-Jan-0.9-------115-Aug

Beacon31,377,8230.8-13.8----------4.616-Apr

Senator65,830,3861.60.64.5----------4.516-Jun

Makuria60,955,6121.50.51.6----------1-Jan16-Jul

Redeeming5,025,083

As of Dec 31 2018



__



MTADBPPMaBSTOA









Private Equity222,652,027.00142,305,379.00























































Other



















$ 400,809,729$ 661,441,08577,732,181374,382,3670.2076277834

$ 400,809,729$ 661,441,085

3

53

26

9

91



MTA DB Plan Charts








MWBE % of Total14%



160,236,189

159,084,591

66,866,991

88,389,989

183,980,065

2,808,349

52,377,727

713,743,901

MTA DB Plan Charts


MaBSTOA Plan Charts












MWBE % of Total15%

















Real Estate

160,708,763

70,464,451

231,173,214

72,742,278

0.3146656861






Chart1

% of US Equity

% of Non-US Equity

% of Fixed Income

% of Opportunistic

% of Private Equity

% of Real Estate


0.5340361361

0.2708892318

0.0855135672

0.0066457433

0

0.3146656861

MTA



__









Atlanta$ 125,151,909Atlanta$ 114,016,527





Lazard$ 82,178,366Lazard$ 67,032,885

Baird$ 151,958,460Baird$ 154,679,397



Advent$ 63,187,271Advent$ 60,133,644







Allianz$ 115,342,207Allianz$ 108,163,604

Canyon$ 90,988,880Canyon$ 84,978,789




Senator$ 67,848,035Senator$ 64,551,788










Rhumbline47,441,035
























XXXXXXXXXX


MaBSTOA



__








Pzena$ 59,278,442Pzena$ 62,259,199






Lazard$ 45,933,378Lazard$ 48,488,709

Baird$ 61,388,926Baird$ 61,878,907




Advent$ 28,917,055Advent$ 29,797,342





Allianz$ 79,308,040Allianz$ 79,673,076

Canyon$ 33,872,539Canyon$ 34,605,311




Senator$ 37,000,000Senator$ 37,911,368


































XXXXXXXXXX


Sheet1

Bridgewater81,392,37220.31.2-6.7-6.1-0.20.66.45.68-Feb



Canyon86,599,2792.20.64.17.264.1----4.113-Oct

Passport51,639,7871.3-2.8-6.4-13.4-17.91-Jan-----0.313-Oct

LibreMax78,893,91221.13.31-Jan-0.9-------115-Aug

Beacon31,377,8230.8-13.8----------4.616-Apr

Senator65,830,3861.60.64.5----------4.516-Jun

Makuria60,955,6121.50.51.6----------1-Jan16-Jul

Redeeming5,025,083

As of Dec 31 2018



__



MTADBPPMaBSTOA









Private Equity222,652,027.00142,305,379.00























































Other



















$ 400,809,729$ 661,441,08577,732,181374,382,3670.2076277834

$ 400,809,729$ 661,441,085

3

53

26

9

91



MTA DB Plan Charts








MWBE % of Total14%



160,236,189

159,084,591

66,866,991

88,389,989

183,980,065

2,808,349

52,377,727

713,743,901

MTA DB Plan Charts


MaBSTOA Plan Charts












MWBE % of Total15%

















Real Estate

160,708,763

70,464,451

231,173,214

72,742,278

0.3146656861






13

Appendix

MTA Defined Benefit Pension PlanLIRR Plan for Additional PlanPension Board of Managers

MEMBER DESIGNEE MTA TITLEChairman of the MTA Margaret Connor

Chair of Pension Board of Managers

Sr. Dir. of Human Resources and Retirement Programs

MTA Labor Relations Richard Cairns Deputy Dir. Labor Counsel, HQMTA Chief Financial Officer David Keller Acting Director of Mgmt & BudgetMetro North James McGovern Controller, MNRLong Island Railroad Michael Reilly Controller, LIRRSIRTOA VACANTMTA Bus Roy Grey-Stewart Director of Finance, MTA BusLong Island Bus Patrick McCoy Director, MTA FinanceTWU Representative Peter Rosconi

MTA Chief Investment Officer RecruitingInvestment Advisor NEPC, LLCActuary Milliman, USATrustee J P Morgan Chase

14

MaBSTOA Pension PlanInvestment Committee

MEMBER DESIGNEE MTA TITLEChairman of Employer's (MaBSTOA) Board Margaret Connor

Sr. Dir. of Human Resources and Retirement Programs

MTA Chief Financial Officer Joseph Cornwall Asst Comptroller, Ben PlansPresident of Transit Authority William Vazoulas Controller, NYCTTWU Local 100 (2 representatives) James Whalen

Richard Davis


15

MTA Retiree Welfare Benefits PlanOther Post Employment Benefits (OPEB)

Board of Managers

MEMBER DESIGNEE MTA TITLEChairman of the MTA Robert Foran, Chair of Welfare

Benefits PlanChief Financial Officer

MTA Chief Financial Officer Josiane Codio Director, MTA TreasuryMTA Labor Relations Margaret Connor Sr. Dir. of Human Resources and

Retirement Programs


16

MTA Chief Investment Officer RecruitingInvestment Advisor MercerRecordkeeper Prudential

17

MTA Deferred Compensation Programs (401K and 457)Deferred Compensation Committee

MEMBER DESIGNEE MTA TITLE

Chairman of the MTA Margaret Connor, Chair Sr. Dir. of Human Resources and Retirement Programs

MTA Labor Relations Richard Cairns Deputy Dir Labor Counsel, HQMTA Chief Financial Officer Frances Chou Assistant Director, MTA BudgetNYCT, President James Masella AVP, NYCT Employee BenefitsTBTA, President VACANTMetro North James McGovern Controller, MNRLong Island Railroad Michael Reilly Controller, LIRRMTA Bus Roy Grey-Stewart Director of Finance, MTA BusMTA Capital Construction VACANT

18

MTA Defined Benefit Plan Investment Managers

Asset Class Investment Manager Asset Class Investment Manager

Large Cap Equity Independent Franchise Partners* Opportunistic Investments CarlyleLazard CrescentRhumbline* Entrust

GramercySmall Cap Equity Atlanta Capital MC Seamax

Pzena VWH Partners

Earnest Partners*Orchard LandmarkOrchard TaigaPark Square

International Equity Blackrock Perella Weinberg

Johnston*PIMCORiverstone

SandersonGlobal Asset Allocation Bridgewater

Emerging Market Equity Eaton Vance MellonLazard PIMCO

WellingtonFixed Income Advent*

Baird Private Equity AEAGAM ApolloSSgA BrookfieldVanguard CrescentWellington Gamut

Goldman SachsAbsolute Return Allianz JFL Equity Parners

BeaconLight LexingtonBridgewater Lightyear Capital

CanyonNewbury Equity PartnersOne Rock*

LibreMaxPantheon

MakuriaPassport Real Estate JP Morgan Real EstateSenator Siguler Guff

Real Assets Arclight Overlay Clifton ParametricEIGNGPRhumbline* Cash Williams Capital*Wellington JP Morgan

*MWBE Investment

Manager

19

MaBSTOA Defined Benefit Plan Investment Managers

*MWBE Investment

Manager


Large Cap Equity Independent Franchise Partners* Opportunistic Investments CarlyleLazard CrescentRhumbline* Entrust

GramercySmall Cap Equity Times Square MC Seamax

PzenaOrchard LandmarkOrchard TaigaPark Square

International Equity Blackrock Perella Weinberg

Johnston*PIMCORiverstone

Sanderson VWH PartnersGlobal Asset Allocation Bridgewater

Emerging Market Equity Eaton Vance MellonLazard PIMCO

WellingtonFixed Income Advent*

Baird Private Equity AEAGAM ApolloSSgA BrookfieldVanguard CrescentWellington Gamut

Goldman SachsAbsolute Return Allianz JFL Equity Parners

BeaconLight LexingtonBridgewater Lightyear Capital

CanyonNewbury Equity PartnersOne Rock*

LibreMax PantheonMakuriaPassport Real Estate JP Morgan Real EstateSenator Siguler Guff

UBSReal Assets Arclight

EIG Overlay Clifton ParametricNGPRhumbline*Wellington Cash Williams Capital*

JP Morgan

20

MTA OPEB– Investment Managers


Global Equity Artisan Global Asset Allocation BridgewaterHexavest PIMCOWalter Scott Wellington

Fixed Income Baird Absolute Return AllianzGAM BridgewaterWellingtonVanguard TIPS

Real Assets Wellington

21

MTA Defined Contribution Plan – Investment Managers

Asset Class Investment Manager Asset Allocation FundsActive Passive MTA Income

Stable Value Galliard MTA 2015MTA 2020

Fixed Income Loomis Sayles SSgA MTA 2025TCW MTA 2030Wellington MTA 2035

MTA 2040Large Cap Equity T Rowe Price Vanguard MTA 2045

Jennison MTA 2050MTA 2055

Small/Mid Cap Equity AllianceBernstein SSgA

MTA 2060MTA 2065

DimensionalJackson SquareWilliam Blair

International Equity Wiliam Blair SSgAMondrian

Real Assets SSgA

Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21

annual review of mta sponsored pension & retirement...

Documents