Firm Description and History
RhumbLine Advisers Limited Partnership (“RhumbLine” or the “Adviser”) is a Massachusetts
limited partnership with its principal office in Boston, Massachusetts. RhumbLine has been
registered with the Securities and Exchange Commission (“SEC”) as an investment adviser
since 1990.
RhumbLine’s sole General Partner is a Massachusetts corporation owned by Denise
D’Entremont, Chief Executive Officer. Ms. D’Entremont owns the majority of the firm directly as
a Limited Partner and indirectly through the General Partner. For more information about our
management team please consult the Brochure Supplement.
Advisory Business
RhumbLine provides its portfolio management services to pension plans, profit sharing plans,
pooled funds, mutual funds, endowments, foundations, charitable organizations, corporations,
labor unions and other business entities. RhumbLine manages accounts on a discretionary
basis only.
Each Client has the opportunity to place reasonable restrictions on the types of investments to
be held in its separate account portfolio or to customize the portfolio’s goals and objectives.
Each portfolio is designed to track the performance and risk of a particular index or an index
blend.
For every account, RhumbLine continually monitors the index specific to that account and will
execute trades in the Client’s account(s) to reflect changes to index constituents. While
RhumbLine seeks to track the target index’s performance to the extent reasonably possible,
there will typically be some variation between the performance of a Client’s account and the
index it is designed to track due to a number of factors, most notably: advisory fees, trading
expenses and other costs, Client-imposed trading restrictions, Client contributions to and
withdrawals from accounts, timing of trades, timing of cash flows resulting from corporate
actions affecting portfolio companies, and the effect of conforming the portfolio to changes in
the index constituents.
Tailored Advisory Services
RhumbLine provides passive (i.e., index-based) portfolio management services to institutional
investors. Advisory services are tailored to the needs of the Client. RhumbLine Advisers
provides customized discretionary management services utilizing an indexed approach to
investing. It manages both pre-defined and “model” as well as customized index strategies
that differ by risk and potential return characteristics. RhumbLine may employ multiple
index strategies to provide the desired diversification and risk characteristics.
Investment Strategy and Objective
Client portfolios are generally designed to track the holdings and allocations of various
published indices, as well as blended and customized indices. Generally, the majority of
RhumbLine’s managed accounts are invested in strategies whose objectives are linked to U.S.
and international equity indices and domestic fixed income indices. RhumbLine’s managed
strategies may include the following:
Market Segment Examples
LARGE-CAP INDEX S&P 500, Russell 1000, Russell Top 200
MID-CAP INDEX S&P 400, Russell Mid-Cap, Russell Mid-Cap Growth
SMALL-CAP INDEX S&P 600, Russell 2000, Russell Small-Cap Completeness
BROAD MARKET INDEX S&P 1500, Wilshire 5000, Russell 3000
INTERNATIONAL INDEX MSCI EAFE, MSCI Emerging Markets, MSCI ACWI-ex U.S.,
Dow Jones Brookfield Global Infrastructure
MSCI ACWI -
ALTERNATIVE INDEX
STRATEGIES
Russell R A F I , RhumbLine Multi-Factor, EDHEC U.S.
Scientific Beta, Russell 1000 H.E.D.I., Equal-Weighted
FIXED INCOME INDEX Core Bond-U.S. Aggregate, U.S. TIPS, U.S. 5-7 Yr. Treasury
REAL ESTATE INDEX FTSE NAREIT U.S. All Equity
RhumbLine also manages portfolios with certain specialized strategies, and may, at its
discretion, agree to customize a portfolio to accommodate specific Client needs and
restrictions. Among the available specialized strategies are Tax-Efficient, Tobacco-Free,
Sudan-Free, Socially Responsible, Fossil Fuel-Free, etc.
These strategies are available as separately managed accounts. For qualified ERISA and other
retirement plans with generally at least $5 million in assets, many of these strategies are
available through investment in a pooled investment fund, and certain strategies are offered in
pooled funds for other types of institutional investors. Such pooled funds carry certain
benefits and risks, which are described in separate disclosure documents.
While index-based investment strategies tend to minimize the potential for conflicts of interest,
such conflicts are resolved in the Client’s best interest whenever possible (e.g., if the sponsor
of an employee benefit plan is a company whose securities are part of an index).
RhumbLine may assist Clients with developing investment objectives and an asset allocation
strategy, and by providing portfolio structure analysis and asset rebalancing.
RhumbLine does not direct Client investments to products or services offered by specific
broker-dealers, insurance companies, or other third-party financial services companies.
Portfolio investments consist primarily of publicly-traded equity securities and government
and corporate fixed income securities, held either directly in a separately managed account
or through a pooled investment vehicle.
RhumbLine may purchase or sell Exchange-Traded Funds or cash-settled index futures,
consistent with a Client’s investment strategy and guidelines. As part of its investment
program, it may also execute foreign currency transactions on a spot or forward basis for
certain Clients investing in foreign securities.
Clients should be aware of investment and other risks, restrictions on withdrawals and
other information relevant to their investment.
Assets Under Management
As of December 31, 2022, RhumbLine Advisers had $88 billion in discretionary assets
under management (AUM).