Medford Investment Regulations

PERAC Approval Date

Regulation Number

Supplemental Investment Regulation

December 4, 2011  

The MRB may forego the normal procurement process for an investment related service (840 CMR 16.08) and transfer assets from the Mellon Capital Management EB Daily Valued Global Alpha I Fund into the Mellon Capital Management EB Daily Valued Expanded Alpha I Fund.

June 5, 2007


State Street Global Advisors is authorized to “short sell” securities up to 30% of the market value of the fund.  This exemption from 840 CMR 21.01(2) allows the manager to pursue the 130/30 strategy that comprises its Index Plus Edge Strategy.

March 5, 2007


Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, the Medford Retirement Board may invest funds of the Retirement System (the “System”) in the fund known as the Institutional Retirement Trust (IRT) International Equity Trust (the “Fund”), and effective as of the date of the initial investment by the System of any of its assets in the Fund, while the assets of the System are so invested, the activities and investments of the Fund, directly or indirectly, shall be deemed to satisfy the prohibited transaction rules set forth in 840 CMR 16.00 et seq. and 840 CMR 17.03 to the extent such activities satisfy the prohibited transaction rules set forth in Section 406 of the U.S. Employee Retirement Income Security Act of 1974, as amended (“ERISA”), taking into account ERISA Section 408(b)(8) as well as other statutory exemptions under ERISA, and Prohibited Transaction Class Exemption 84-14, as amended, Prohibited Transaction Class Exemption 91-38, and other available class exemptions.

September 26, 2006


In order to expand the range of investment opportunities and to better manage risk, Wellington Management Company’s Opportunistic Investment Approach is authorized to utilize long and short positions in certain derivative instruments.  These positions would be used to implement pair-wise relative value trades involving various asset classes and subclasses, regions, currencies, and other market segments.  The instruments used will be highly liquid, no net leverage will be employed, and there will be no individual stocks sold short.  The notational value of such instruments will be limited to 15% of the total market value of the portfolio.

September 26, 2006


The PIMCO All Asset Fund seeks to achieve real rates of return by opportunistically investing in a broad range of SEC-regulated PIMCO mutual funds.  In addition to funds that invest in short and long-term investment grade bonds, high yield bonds, global bonds, emerging market bonds, Treasury Inflation-Protected Securities, real estate securities, domestic and international stocks, the Fund may invest in the PIMCO Commodity Real Return Strategy Fund.  Also, all the funds are permitted to achieve exposure to their respective markets by the use of derivative instruments, including options, futures, options on futures, and swaps.  This strategy allows the funds to seek incremental returns by investing the available cash in short and intermediate-term fixed income instruments.  Although not a fundamental part of the funds’ strategies, the underlying funds are permitted to execute short sales.

September 26, 2006


Mellon Capital Global Alpha I seeks to produce absolute returns by entering into long and/or short asset positions in any of the countries and/or asset classes in the MSCI World and Citigroup WGBI Indices, or in the currencies of these countries.  The fund takes positions in the stock and bond markets of the ten largest developed countries and eleven major currencies.  It takes positions only in equity index funds and government bonds in the various countries.  Utilizing long and/or short positions in these markets, the fund may make relative value bets within and among the stock markets, bond markets, or currencies of the major developed country markets.  There will be no net short positions in the major asset classes and no leverage is employed.  Market exposures may be achieved through the use of derivative contracts, all of which are expected to be fully collateralized, exchange-traded, and independently priced.

March 13, 2002


In accordance with Investment Guideline 99-2, the Medford Retirement Board is authorized to modify its small cap value mandate with Loomis, Sayles & Company.  The Small Company Value Fund in which the Board is currently invested is being closed and liquidated by the company.  The Board’s assets invested in that fund will be transferred into the Loomis Sayles Small Cap Value Fund, which has the same investment strategy, is managed by the same team, and has the same expenses as the prior fund.