Mary S. Jones

Vice President and Treasurer (Retired)

Union Pacific Corporation

Joel Parker

Labor Trustee 

Bill Slater

Acting Head, Finance and Treasury

CSX Corporation

William C. Walpert

National Secretary-Treasurer Emeritus

Brotherhood of Locomotive Engineers

 and Trainmen (BLET)

TRUSTEES:

Chair: Christopher R. Neikirk

Vice President & Treasurer 

Norfolk Southern Corporation

Douglas J. Brown

Independent Trustee

George J. Francisco, Jr.

President Emeritus

National Conference of Firemen

 and Oilers - SEIU

OCTOBER 2022 

QUARTERLY UPDATE

FOR THE PERIOD ENDING SEPTEMBER 30, 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 September 30, 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 September 30, 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 

September 30, 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 $800 million. Since the Trust’s inception, it has transferred 

a total of $31.7 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.

National Railroad Retirement Investment Trust
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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 September 30, 2022

Trust-Managed Assets: -5.28%

Strategic Policy Benchmark: -6.34%

Market Value of Assets

(Asset values are in billions of dollars)

Trust-managed assets

As of June 30, 2022 $ 25.2

As of September 30, 2022 $ 23.1

Change for quarter ended September 30, 2022 $ -2.1

Change in Trust-managed assets since inception

Total transfers from Treasury since inception $ 21.3

Total transfers to Treasury since inception $-31.7

Total change in assets since inception $ 33.5

As of September 30, 2022 $ 23.1

Trust-managed assets and RRB assets held in reserve

As of June 30, 2022 $ 26.9

As of September 30, 2022 $ 25.0

Change for quarter ended September 30, 2022 $ -1.9

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