Investment Plan - OPERS

2 0 1 0 I N V E S T M E N T P L A N
FUND STRATEGIES
Asset Allocation
The 2010 target asset allocation and ranges for the Health Care Fund reflect Staff’s estimate of the
progress that will be made towards the new asset allocations adopted in 2009, and are shown below.
8/31/2009
12/31/10
Asset Class
Actual
Target Range
Public Equity 53.1% 49.1% 47% to 63%
U.S. Equity 28.4% 26.0% 23.5% to 31.5%
Non-U.S. Equity 24.7% 23.2% 23.5% to 31.5%
Public Fixed Income 39.8% 42.7% 26% to 42%
Core Fixed 6.2% 13.0% 17.5% to 25.5%
TIPS 19.3% 19.7% 0% to 7.5%
Short Bonds 9.9% 0.0% 0% to 10%
High Yield 0.6% 1.9% 0% to 6%
Emerging Mkt Debt 3.0% 3.6% 1% to 9%
Liquidity 0.7% 0.5% 0% to 4%
Alternatives 7.1% 8.2% 2% to 14%
REIT 6.1% 6.0% 2% to 10%
Opportunistic/Hedge Funds 0.9% 1.9% 0% to 8%
Commodities 0.0% 0.3% 0% to 2%
Total Health Care Fund 100.0% 100.0%
There is no peer universe for health care funds run by comparable large public pension plans. The
internally managed opportunistic distressed fixed income assets are included in the Opportunistic/Hedge
Funds asset class. The asset mix shown above moves the Health Care Fund toward the asset allocation
targets that were developed based on an asset-liability study completed in 2009.
Throughout 2010 and beyond, Staff will work with OPERS’ Advisors to recommend certain enhancements
to the asset mix and asset management strategies targeted at raising the expected return within acceptable
risk levels. While not all of these strategies have been clearly defined, several are described in the Asset
Class Strategies section later in this plan.
36