LACERS Assets

One of LACERS primary goals is to maintain a diversified investment portfolio. What this means is that we invest our trust assets in a variety of different investments with different levels of investment risk, potential for return, and earning periods. Because the economic climate is very dynamic and unpredictable, it is safer to have monies invested in as many different types of investments as is prudent. Under certain economic conditions, some of those investments might flourish while others stagnate. Yet, when conditions change, the investments that did not perform as well previously might thrive, while the ones that were performing well may slow down. By not putting all of our eggs in one basket, we are lowering our risk of loss and maximizing returns. In addition, LACERS has been innovative in identifying new investment options and in focusing attention on particular strategies to take advantage of certain market opportunities over the years.

LACERS Asset Classes

• Domestic equity: U.S. stocks
• International equity: Non-U.S. stocks
• Fixed income: Bonds
• Alternative investments: Private equity, which includes venture capital, leveraged buyouts, etc.
• Real estate: Investments in real estate funds
• Liquidity: Short-term investments (cash and cash equivalents)

LACERS TARGET ASSET ALLOCATION
As of December 31, 2007

Number of LACERS Fund Managers Based on Asset Class

LACERS hires fund managers who oversee investments in particular markets. The following is a list of managers per asset class (as of 1/1/08):

8		Bond Managers
14		Domestic Equity Managers
10		International Equity Managers
34		Real Estate Managers
77		Alternative Investments / Private Equity Managers