Total Fund Investment Returns
As of June 30, 2010

	1 Year	3 Years	5 Years	7 Years	10 Years
PSRS	13.0%	-4.5%	2.2%	4.6%	3.2%
PEERS	12.7%	-4.5%	2.2%	4.6%	3.2%
Policy Benchmark **	11.3%	-4.6%	1.9%	4.4%	2.8%

The Board has established a long-term goal to achieve a total investment return of at least 8.0 percent per year and a real rate of return of at least 4.75 percent per year.  The real rate of return is the rate by which the long-term total return exceeds the inflation rate.  The annualized returns for the 3-, 5-, 7- and 10-year time periods are significantly less than the long-term investment objective of 8.0 percent due to the severe credit crisis and resulting market decline experienced during 2008 and early 2009.  In contrast, the fiscal year investment returns are substantially higher than the long-term investment objective due to the strong market recovery that started in March 2009 and continued into 2010.  The ten-year annualized total returns of 3.2 percent for PSRS and PEERS exceed the policy benchmark return of 2.8 percent.

*	The Retirement Systems’ 2010 Fiscal Year began on July 1, 2009.
**	The Policy Benchmark is comprised of 40.5% Russell 3000 Index, 16.0% Barclays Capital Treasury Blend, 15.0% MSCI All Country World ex-U.S. Free Index, 15.0% Barclays Capital Intermediate Credit Index, 7.5% NCREIF Property Index, 4.0% Barclays Capital U.S. TIPS 1-10 Year Index and 2.0% Merrill Lynch High Yield Master II Index.