MHFA Investment Regulations

PERAC Approval Date

Regulation Number

Supplemental Investment Regulation

December 14, 2011  

In relation to the investment of the Massachusetts Housing Finance Agency Employees’ Retirement System (“System”) in Columbia Trust U.S. High Yield Bond Fund (“Fund”), by virtue of its investment in Columbia Trust U.S. High Yield Bond Fund A (“Sub-Fund”), the following will apply. The investment objective of the Fund is to seek to generate strong risk-adjusted returns over a full market cycle by targeting the maximum value for risks that are taken and striving for strong total return.  The Fund will invest its net assets primarily in high-yield debt instruments.

840 CMR 21.01(3): Futures contracts will be allowed notwithstanding the limits set forth herein to the extent that they will be used for hedging purposes or as a substitute for actual securities in cases where the derivative instrument is a more efficient means of gaining exposure to the underlying securities.

840 CMR 21.01(6): Restricted stock will be allowed notwithstanding the limits set forth herein to the extent that restricted stock is received in the context of bankruptcy restructuring.

840 CMR 16.07(2): This section shall be deemed to be met provided that a representative of the Fund meets annually with the Board.

840 CMR 16.07(4): The requirements set forth herein shall be deemed to have been met provided that the Ameriprise Trust Company (the “Trustee”) or its delegate promptly notify the System with respect to personnel changes involving Jennifer Ponce de Leon, the portfolio manager of the Fund.

840 CMR 17.02 and 17.03: The Trustee shall be deemed to have met the requirements set forth herein with respect to fiduciary duty and the Code of Ethics for Fiduciaries provided that it complies with its fiduciary obligations and responsibilities set forth in the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), and complies with a Code of Ethics and Code of Conduct that is at least as stringent as is required by the Investment Advisers Act of 1940, as amended, even though the Trustee is not required to be registered as an investment adviser under that act. 

840 CMR 17.04(1)-(7) and (9)-(10): The requirements set forth herein shall apply only to the extent that these standards are not addressed by the fiduciary obligations and responsibilities set forth in ERISA to which the Trustee is subject with respect to all investors in the Fund, which is a pooled investment vehicle.

May 12, 2011 16.07(4), 17.04(3)(b) & 21.01 (6)

The Massachusetts Housing Finance Agency Retirement Board is authorized to invest in RS Global Natural Resources Fund Class Y.  840 CMR 16.07(4) will not apply to the extent that the Board is notified in a timely manner of all key staffing changes at the same time as other investors in the mutual fund.  840 CMR 17.04(3)(b) will not apply to the extent that RS Investments considers the appropriateness and suitability of all investments relative to the objectives of the mutual fund rather than for any individual client.  840 CMR 21.01(6) does not apply since the Fund’s prospectus permits possible use of lettered or restricted stock.

June 16, 2009 16.08 In accordance with Investment Guideline 99-2, the Massachusetts Housing Finance Agency Employees’ Retirement System is authorized to make modest modifications to its two index fund products managed by State Street Global Advisors.  In order to maintain daily liquidity, the System is transferring assets from the versions of SSgA’s TIPS Index Fund and Russell 1000 Growth Index Fund that allow securities lending to versions that do not permit lending.

March 16, 2009  

(1) Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, the Massachusetts Housing Finance Agency Employees’ Retirement Board may invest funds of the Massachusetts Housing Finance Agency Employees’ Retirement System (the “System”) in the fund known as The Realty Associates Fund IX (consisting of Realty Associates Fund IX Corporation and The Realty Associates Fund IX, L.P., collectively, the “Fund”), and while the assets 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., 17.00 et seq., and 840 CMR 21.01, the System’s interest in the Fund but not any of the underlying assets of the Fund; provided that, at all times, either (A) less than twenty-five percent (25%) of each class of equity interest in the Fund is held by “benefit plan investors” (within the meaning of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) and the regulations promulgated thereunder), or (B) the Fund qualifies as a “venture capital operating company” and/or “real estate operating company” within the meaning of ERISA and the regulations promulgated thereunder.

(2) 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.

August 15, 2008  

Notwithstanding the provisions of any statute or regulations of the Public Employee Retirement Administration Commission to the contrary, including the provisions of 840 CMR 21.01(2)(3)(4) and (5), the Massachusetts Housing Finance Agency Retirement Board is hereby granted an exemption from restrictions on investment and may invest a portion of the funds of the Massachusetts Housing Finance Agency Retirement System with Munder Capital as sub-advisor for Comerica Bank in the Munder International Small-Cap Collective Fund.

March 24, 2008 16.08 In accordance with Investment Guideline 99-3, the Massachusetts Housing Finance Agency 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.

May 29, 2007

17.03

Notwithstanding the provisions of the Public Employee Retirement Administration Commission regulations, the Massachusetts Housing Finance Agency 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.

April 20, 2007

16.08

In accordance with Investment Guideline 99-2, the Massachusetts Housing Finance Agency Retirement Board may modify its domestic equity index mandate with State Street Global Advisors.  Having been a satisfied investor in SSgA’s Russell 1000 Value Index Fund, the Board will now also invest in the SSgA Russell 1000 Growth Index Fund.  After a review of possible other providers of this index mandate, the Board and its consultant have determined that the SSgA fund is the most cost-effective and efficient means to accomplish its investment strategy.  Rather than have a single investment in a Russell 1000 Index fund, the Board will maintain separate investments in the Growth and Value sub-indices in order to accomplish opportunistic over and under-weights in the two styles.

April 10, 2007

16.08

The Massachusetts Housing Finance Agency Retirement Board is authorized to invest in State Street Global Advisors’ Treasury Inflation Protected Securities (TIPS) Fund.

December 19, 2003

16.08

In accordance with Investment Guideline 99-3, the Massachusetts Housing Finance Agency Retirement System is authorized to invest in Ascent Venture Partners IV, L.P.  The System has had a satisfactory relationship and favorable investment results in its investment in Ascent’s two prior partnerships.