Parochial Employees' Retirement System

Parochial Employees' Retirement System

Parochial Employees Retirement System 2014 Administrative Training Investment Overview PERS Asset Allocation Investment Current Outlook Performance Economic Conditions

What is asset allocation? Asset allocation is a process that determines the appropriate mix of stocks, bonds, real estate, hedge funds, etc. we should own PERS Chief Investment Officer and consultant evaluate the global capital markets and economic conditions to determine the best asset mix for the plan A robust asset allocation process helps us ensure the plan assets grow enough to keep pace with the plan liabilities PERS Asset Allocation 8/31/2014

Total Equity (stocks) 62.8% Total Fixed Income 29.1% Total Alternatives

8.1% PERS Equity Allocation 8/31/14 Equity Large Cap Domestic Mid Cap Domestic Small Cap Domestic International Developed Emerging Market Total Equity 26.8% 4.8% 6.8% 18.0% 6.4%

62.8% PERS Fixed Income Allocation 8/31/14 Fixed Income Multi Sector Debt 16.2% Emerging Market Debt 4.1% Investment Grade Domestic 0.9% Private Placements 6.0% Senior Bank Loans 1.9% Total Fixed Income 29.1%

PERS Alternatives Allocation 8/31/14 Alternatives Real Estate Timber Hedge Funds Private Equity Total Alternatives 3.7% 0.7% 3.3% 0.4% 8.1% Investment Performance 2009

2010 2011 2012 2013 2014 (thru 9/31)* Plan A +20.82% +15.24% -0.66% +15.63% +18.67% +4.00% Plan B +20.85%

+15.26% -0.66% +15.87% +18.22% +4.00% Current Economic Conditions Low Interest Rates European Middle Economic Woes

East Concerns/Violence Russian Sanctions Treasury Yields 3 months 6 months 2 years 5 years 10 years 30 years 9/31/07 9/26/12 3.80

0.11 4.08 0.14 3.99 0.26 4.25 0.63 4.59 1.63 4.87 2.80 10/3/14 0.01 0.04 0.57

1.76 2.47 3.15 Summary Outlook Questions???

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