About The Common Retirement Fund
The Common Retirement Fund has a long-term, solid track record of exceptional market performance. The Fund’s historical success is principally due to a sound investment strategy based on the Fund's asset allocation and diversification policies.
The Fund’s assets are diversified among various classes including domestic and international equity, fixed income, inflation-indexed securities, real estate, private equity, opportunistic funds and absolute return strategies. Investments in domestic, international and private equity provide superior performance and growth characteristics, while historically less volatile fixed income investments provide predictable cash flow to meet the System’s funding requirements and pension obligations.
Total Fund Performance Results — As of March 31, 2012
| Asset Class | One Year | Three Years | Five Years | Ten Years |
|---|---|---|---|---|
| Global Equity | 3.17% | 22.44% | 0.95% | 4.98% |
| S&P 500 | 8.54% | 23.42% | 2.01% | 4.12% |
| Equity Real Estate | 17.64% | 2.50% | (3.60)% | 10.77% |
| MSCI EAFE | (5.77)% | 17.13% | (3.51)% | 5.70% |
| MSCI Emerging Markets | (8.81)% | 25.06% | 4.67% | 14.13% |
| Common Retirement Fund — Core | 8.75% | 8.21% | 7.54% | 7.43% |
| Treasury Inflation Indexed Securities | 16.48% | 10.31% | 8.62% | 8.75% |
| Barclays Capital Aggregate Bond Index | 7.71% | 6.83% | 6.25% | 5.80% |
| Total Fund | 5.96% | 15.19% | 2.91% | 6.45% |
Thanks to the investment program’s asset allocation and diversification strategy, the long-term value of the Fund’s assets are both protected and enhanced. Since the Fund’s assets are protected, current and future benefits can be paid to the System’s participants while minimizing employer contributions.
Asset Allocation — March 31, 2012
| Asset Type | Long-Term Policy Allocation | Allocation as of March 31, 2011 | Transition Target |
|---|---|---|---|
| Equity | |||
| Domestic Equity | 30.0% | 39.1% | 36.0% |
| International Equity | 13.0% | 15.4% | 14.5% |
| Alternatives | |||
| Private Equity | 10.0% | 9.6% | 9.0% |
| Real Estate | 6.0% | 6.1% | 6.0% |
| Absolute Return Strategies | 4.0% | 2.0% | 3.0% |
| Opportunistic Portfolio | 4.0% | 0.3% | 1.0% |
| Real Asset | 3.0% | 0.0% | 0.0% |
| Bonds, Cash & Mortgages | 22.0% | 19.9% | 21.0% |
| Inflation Indexed Bonds | 8.0% | 7.6% | 8.5% |
