Montana Board of Investments

The Montana Board of Investments (MBOI) is the state agency responsible for investing public funds on behalf of Montana’s retirement systems and trust funds. With approximately $22 billion in total assets under management, MBOI serves as the centralized investment manager for the Montana Public Employees’ Retirement System, the Teachers’ Retirement System, and several other state trust and permanent funds.

Investment Strategy

MBOI manages a diversified portfolio across public equity, fixed income, real estate, private equity, and other alternative asset classes. The board sets strategic asset allocation targets for each fund under its management, recognizing that different pools of capital may have distinct risk tolerances and return objectives based on their liability profiles.

Public equity allocations include domestic and international stocks, managed through both active and passive strategies. Fixed income provides stability and cash flow, with holdings in government bonds, investment-grade corporate debt, and other income instruments. MBOI’s investment philosophy centers on long-term value creation, diversification, and cost-effective implementation.

The board has maintained a meaningful allocation to alternative investments, reflecting the long time horizon of the pension funds and the diversification benefits that private markets can offer. MBOI has been a consistent allocator to alternatives over multiple market cycles.

Private Markets Approach

MBOI’s private markets program includes private equity, real estate, and other alternative strategies. The private equity portfolio encompasses buyout, growth equity, and venture capital fund commitments, with diversification across strategy types, vintage years, and geographies. The board generally favors established general partners but has selectively invested with newer managers.

Real estate investments span core, value-add, and opportunistic strategies, accessed through commingled fund vehicles. These allocations provide income, inflation protection, and diversification from public equity markets.

The board manages commitment pacing to maintain target private markets exposure while avoiding overcommitment during any single vintage year. Fund managers seeking allocations from MBOI should expect thorough due diligence covering investment strategy, team capabilities, historical performance, operational infrastructure, and fee terms. The board’s investment staff conducts initial evaluation and presents recommendations to the board for approval of new commitments.