Cambridge Investment Regulations

PERAC Approval Date

Regulation Number

Supplemental Investment Regulation

September 16, 2010 19.01(8)

The Cambridge Retirement Board is authorized to increase its maximum permitted allocation to alternative investments from 5% to 7.5%. Analysis by the Board’s investment consultant indicated that this adjustment would enhance the ability of the Board to meet its 8.25% actuarial assumption in a diversified and prudent manner. It is noted that the Board’s definition of alternative investments includes value-added real estate and timber.

August 11, 2009 16.08 The Cambridge Retirement Board is authorized to invest in the State Street Global Advisors Russell 1000 Growth Index Fund on a temporary basis.  The Board has terminated its incumbent large cap growth manager for performance reasons and will commence a competitive search process for a permanent replacement manager.  Pending the completion of that search, the Board’s consultant has determined that the SSgA index fund is the most appropriate and cost-effective means to maintain the board’s asset allocation during the search.  The Board has existing, satisfactory relationships with SSgA index funds.  This authorization will extend through December 15, 2009.

August 4, 2009 16.08

The Cambridge Retirement Board is authorized to invest in Hancock Timberland X, L.P. The Board and its investment consultant see this as a follow-on investment to the Board’s existing investment in the Hancock Timber ForesTree V Fund.  The Board has been a satisfied investor in that fund, which has essentially the same management team and investment strategy as Hancock Timberland X.  About 90% of the Board’s invested assets in ForesTree V have been returned to date.  The manager has submitted the required updated regulatory documents.

April 14, 2008

16.08

In accordance with Investment Guideline 99-3, the Cambridge Retirement Board is authorized to invest in Ascent Venture Partners V.  The Board has been a satisfied investor in Ascent Venture Partners IV.  The management team and strategy are unchanged and Ascent Venture Partners has submitted an updated Exemption Application.

January 2, 2008

21.01(2)

Pyramis Global Advisors’ Large Cap Core 130/30 Fund follows a strategy permits the portfolio manager to execute short sales up to an amount equal to 30% of the account’s net market value and to purchase additional securities with the proceeds of the short sales.  Total exposure relative to the benchmark will be no more that 1.00.  This authorizes the manager to make these short sales.

April 28, 2005

19.01(6)

Notwithstanding the provisions of Public Employee Retirement Administration Commission regulations, the Cambridge Retirement Board may invest funds of the Cambridge Retirement System (the “System”) in the fund known as AEW Partners V, L.P. (“the Fund”), and while the funds of the System are so invested, the assets of the System shall be deemed to include, for purposes of applying the rules set forth in 840 CMR 16.00 et seq. and 17.00 et seq.; the System’s interest in the Fund but not any of the underlying assets of the Fund; provided that, at all times, the Fund qualified as a “venture capital operating company” or “real estate operating company” within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and the regulations promulgated thereunder.

The Limitations and restrictions of 840 CMR Section 19.01(6) shall not apply to the Fund for the two-year period commencing on the date of the Fund’s initial investment.

April 7, 2005

16.08

The Cambridge Retirement Board is authorized to modify the structure of its mid cap growth equity mandate with Loomis Sayles & Company from a commingled fund to a separately managed account.  This change was necessitated by Loomis Sayles’ decision to terminate the commingled fund.  The portfolio management team and investment strategy remain the same.

July 27, 2004

16.08

In accordance with Investment Guideline 99-3, the Cambridge Retirement Board is authorized to invest in Ascent Venture Partners IV, L.P.  The board has been a satisfied investor in the two predecessor partnerships, Ascent Venture Partners II and Ascent Venture Partners III, and seeks to maintain its asset allocation to venture capital by investing in Ascent Venture Partners IV.

March 12, 2001

16.08

Having voted to terminate the large-cap value equity portfolio managed by Freedom Capital Management Corporation, the Cambridge Retirement Board is authorized to invest in the State Street Global Advisors large cap value index fund as a temporary measure to maintain the system’s asset allocation pending completion of a formal search process for a permanent replacement manager.  The Board has an existing relationship with SSgA, a leader in institutional index funds.