The sole purpose of the System’s investment fund (“the Fund”) is to accumulate the financial reserves necessary to provide benefits to eligible members of the System and their beneficiaries. The long-term primary objective for the Fund is to attain a high level of return within an acceptable level of risk.

The Fund will pursue achievement of this goal via fiduciary best practices that:

• Ensure proper diversification of asset classes and factor exposures; and
• Maintain appropriate long-term risk and return expectations; and
• Adapt the Fund to changing market conditions, when appropriate.

The Board, with consultation, advice and assistance from the System’s Investment Consultant(s) and Staff, will use the Fund’s strategic asset allocation process and its effective implementation as the primary tools to achieve these goals.  A primary emphasis of the management of the Fund is consistency of growth by seeking to balance the risk of inadequate long-term returns against the risk of permanent impairment of capital.  Taxes shall not be a consideration except that the System’s tax-exempt status should be preserved.