PSRS/PEERS Asset Allocation
As of June 30, 2010

	Public Risk Assets				Safe Assets		Private Risk Assets
	U.S. Equity	Credit Bonds	Hedged Assets	Global Equity	U.S. Treasuries	U.S. TIPS	Private Equity	Real Estate	Private Credit	Cash & Equivalents
Target Allocation*	27.0%	12.0%	6.0%	15.0%	16.0%	4.0%	10.5%	7.5%	2.0%	0.0%
Actual Allocation	29.6%	10.1%	10.4%	17.5%	16.4%	4.4%	5.5%	4.5%	1.4%	0.2%

The time horizon of the Systems’ investment portfolio reflects the long-term nature of the PSRS/PEERS pension obligations.  Accordingly, diversification among investments displaying unique risk and return characteristics provides the framework for selecting an asset allocation that is expected, in the aggregate, to give the funds the highest long-term return within a prudent risk level.  In June 2009, the Board approved a risk-based asset allocation consisting of Public Risk Assets (U.S. Equity, Credit Bonds, Hedged Assets and Global Equity), Safe Assets (U.S. Treasuries and U.S. TIPS) and Private Risk Assets (Private Equity, Real Estate and Private Credit).  The Systems’ asset allocation is reviewed in conjunction with plan liabilities at least every three years.

* The target allocation depicted above was approved by the Board of Trustees on June 8, 2009.