Total Fund Investment Returns    
As of December 31, 2011

	Fiscal Year To Date*	1 Year	3 Years	5 Years	7 Years	10 Years
PSRS	-3.7%	2.1%	10.2%	1.7%	4.0%	5.1%
PEERS	-3.9%	1.6%	10.0%	1.6%	4.0%	5.0%
Policy Benchmark**	-2.6%	2.3%	10.7%	1.5%	3.8%	4.9%

                

 

 

 

 

 

 

The Board has established a long-term goal to achieve a total investment return of at least 8.0 % per year and a real rate of return of at least 5.5% per year. The real rate of return is the rate by which the long-term total return exceeds the inflation rate. Other than the 3-year timeframe, the annualized returns for the time periods shown above are less than the long-term investment objective of 8.0% due to the severe credit crisis and extreme market volatility beginning in 2008 and continuing through 2011. The 10-year annualized total returns of 5.1% for PSRS and 5.0% for PEERS exceed the policy benchmark return of 4.9%.

* The Retirement Systems’ 2012 Fiscal Year began on July 1, 2011.
**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.