National Railroad Retirement Investment Trust

APRIL 2022

QUARTERLY UPDATE

FOR THE PERIOD ENDING MARCH 31, 2022

The National Railroad Retirement Investment Trust (the "Trust") issues a Quarterly Update to

provide current information on the Trust’s operations and activities relating to its investment

operations. This update reports on the Trust’s activities for the quarter ending March 31, 2022. Copies

of the Trust's Annual Management Report and each Quarterly Update are available on the website of

the Railroad Retirement Board ("RRB"), http://www.rrb.gov.

As of March 31, 2022, the Trust had received a total of $21.3 billion from the Treasury for

investment. Most of this amount was transferred to the Trust periodically during the first six months

of its 2003 fiscal year beginning in October 2002. No transfers from the Treasury have been received

by the Trust since the Trust’s fiscal year ended September 30, 2004. In the quarter ended

March 31, 2022, the Trust continued to transfer monies to the Treasury to help fund benefit payments

and administrative expenses of the Railroad Retirement Account (“RRA”). Transfers to the Treasury

during the quarter amounted to $528 million. Since the Trust’s inception, it has transferred a total of

$30.6 billion to the Treasury.

Investment Objectives

The Trust’s primary investment objectives are to establish a portfolio that will achieve a longterm rate-of-return on assets sufficient to enhance the financial strength of the railroad retirement

system and to do so in a diversified manner that minimizes the risk of large losses. Achievement of

these objectives will facilitate the payment of benefits by the Railroad Retirement Board and the United

States Treasury. To further these objectives the Trust has established an asset allocation policy and

will seek to add value by obtaining returns that are in the aggregate greater than the returns of its

strategic policy benchmark for this asset allocation. In addition, the Trust takes other appropriate

steps to manage investment risk and volatility effectively.

In 2002, the Trust conducted its first comprehensive asset allocation study for the purpose of

analyzing alternative asset allocation strategies for the Trust. The study analyzed the long-term

expected return, risk, and return correlation of various asset classes, as well as the expected return

and risk of various portfolios of these asset classes. In 2004, 2006, 2008, 2009, 2011, 2014, 2017,

and 2020 the Trust took steps to review and update its asset allocation. As a result of these reviews,

the Trustees have refined periodically the Trust’s asset allocation policy and strategic policy

benchmark.

TRUSTEES:

Chair: Christopher R. Neikirk

Vice President & Treasurer

Norfolk Southern Corporation

Mary S. Jones

Vice President and Treasurer (Retired)

Union Pacific Corporation

Joel Parker

Labor Trustee

William F. Quinn

Independent Trustee

George J. Francisco, Jr.

President Emeritus

National Conference of Firemen

and Oilers - SEIU

Bill Slater

Acting Head, Finance and Treasury

CSX Corporation

William C. Walpert

National Secretary-Treasurer Emeritus

Brotherhood of Locomotive Engineers

and Trainmen (BLET)
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Trust's current asset allocation policy and strategic policy benchmark are contained in its

Investment Guidelines which are included as Appendix B of the Trust’s Annual Management Report.

The investment performance for the Trust, as well as the change in market value of Trustmanaged and RRB-held assets, is summarized below for the most recent quarter.

Investment Performance – Net of Fees

for the Quarter ended March 31, 2022

Trust-Managed Assets: -2.76%

Strategic Policy Benchmark: -2.66%

Market Value of Assets

(Asset values are in billions of dollars)

Trust-managed assets

As of December 31, 2021 $ 29.4

As of March 31, 2022 $ 28.1

Change for quarter ended March 31, 2022 $ -1.3

Change in Trust-managed assets since inception

Total transfers from Treasury since inception $ 21.3

Total transfers to Treasury since inception $-30.6

Total change in assets since inception $ 37.4

As of March 31, 2022 $ 28.1

Trust-managed assets and RRB assets held in reserve

As of December 31, 2021 $ 31.1

As of March 31, 2022 $ 30.0

Change for quarter ended March 31, 2022 $ -1.1

Financial Market Volatility

The Trust originally deployed assets received from Treasury into a diversified and balanced

portfolio of US and non-US equity and US fixed income securities. Over time, the Trust has furthered

that diversification by allocating a percentage of the portfolio to global fixed income securities,

absolute return and opportunistic funds, private equity, private debt, and real assets. As mandated

by its statute, the Trust has avoided undue concentration of investment in any asset class, type of

security, or market sector. This policy of broad diversification is intended to serve the Trust well in

strong markets and to protect its assets from disproportionate market shocks in volatile periods. As

part of this diversification process, the Trust holds tens of thousands of different securities selected

by its investment managers for its portfolio.

Trustees and investment staff continue to carefully monitor the Trust’s existing investments

and examine ways to refine its strategies to invest Trust assets in the most effective and prudent

manner. The Board of Trustees will continue to manage the assets of the Trust as a patient, longterm investor, recognizing its responsibilities to the railroad retirement system, its workers, and

retirees.

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Annual Report

The Trust’s Annual Management Report contains additional information regarding the Trust’s

investment activities as well as other financial information. This report can be found on the Railroad

Retirement Board’s website at http://www.rrb.gov.

National Railroad Retirement Investment Trust | 2001 K Street NW, Suite 1100 | Washington, DC 20006

Whistleblower Complaints: (877) 888-0002 or https://nrrit.navexglobal.com

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