Investment Plan - OPERS

2 0 1 0 I N V E S T M E N T P L A N
INVESTMENT PROGRAM
Average Assets
The table below shows a summary of actual and estimated assets for the Defined Benefit and Health Care Funds.
Office
of the
CIO
The combined assets are based on 2010 target portfolio and asset class allocations for the Defined Benefit
and Health Care Funds. The estimated assets reflect the Defined Benefit and Health Care Funds
estimated market values, returns and cash flows as detailed in the Defined Benefit and Health Care Funds
Strategies section of this plan.
Total Costs
The estimated total cost of the investment program in 2010 will be $217.25 million or 31.2 basis points of
assets under management. This compares to the total costs in the 2009 Annual Investment Plan of $197.42
million or 25.9 basis points of assets under management. The increase reflects the growing allocation to
more complex externally managed asset classes such as Private Equity and Private Real Estate.
CEM Benchmarking, Inc. is an independent benchmarking firm for pension plans and provides an
assessment of OPERS investment operations relative to a global set of peers. In 2008, OPERS actual cost
of 21.5 basis points was below the benchmark cost of 26.3 basis points. This savings of 4.8 basis points
amounts to $33.4 million on average assets of $69.56 billion.
25
Actual and Estimated Assets
Combined Defined Benefit and Health Care Funds
($ billions)
Fund
Mgmt.
Global
Bonds
Internal
Mgmt.
U.S. Equity
Internal
Mgmt.
External
Mgmt.
Total
Invest.
Division
August 31, 2009 Actual Unaudited NA $17.2 $16.3 $5.9 $26.1 $65.5
December 31, 2009 Estimated NA $17.6 $17.3 $5.2 $28.2 $68.3
Average 2010 Estimated NA $18.1 $17.4 $4.7 $29.4 $69.6
December 31, 2010 Estimated NA $16.9 $17.5 $3.7 $32.7 $70.8
Office
of the
CIO
Fund
Mgmt.
Estimated 2010 Total Costs
($ millions)
U.S. Equity
Internal
Mgmt.
Global
Bonds
Internal
Mgmt.
External
Mgmt.
Total
Invest.
Division
Total Compensation 1.28 2.14 2.37 2.40 3.09 11.27 5.2%
Operating Budget less Compensation 1.47 1.31 0.61 0.86 2.40 6.65 3.1%
Manager Fees 194.27 194.27 89.4%
Custody and Overhead 5.05 2.3%
Total Costs 2.75 3.45 2.98 3.25 199.76 217.25 100.0%
Percent of Total 1.3% 1.6% 1.4% 1.5% 91.9%
Average 2009 Asset Size ($ b) NA 18.14 4.65 17.38 29.39 69.56
Costs in Basis Points to Asset Class NA 1.9 6.4 1.9 68.0 NA
Costs in Basis Points to Total Fund 0.4 0.5 0.4 0.5 28.7 31.2
% of
Total