The Board of Trustees has established an asset allocation model to divide TRS investments into various asset classes. The Board's philosophy is that the division of assets is just as important as the security selections made by the portfolio managers employed to make the day-to-day decisions on which individual stocks or bonds to purchase and when to sell.
On June 30, 2007, the TRS investment allocation included:
| 53.9% |
Domestic Equities |
| 17.6% |
International Equities |
| 26.9% |
Fixed Income |
| 1.6% |
Cash |
The Board's target allocation calls for:
| 53% |
Domestic Equities |
| 17% |
International Equities |
| 30% |
Domestic fixed Income |
The Board regularly rebalances the division of assets to agree with established targets. This rebalancing will occur as often as necessary to maintain the investment discipline and long-term strategy the Board believes is in the best interest of TRS over an extended period of time.
Since 1989, the Board has implemented an investment strategy designed to increase TRS exposure to equities. The Board believes long-term returns will be enhanced by a positive tilt to stocks. Progress to a more aggressive investment philosophy can be seen in the changing asset mix in our Investment Asset Allocation Charts. TRS is a long-term investor and the goal is stable performance through a complete market cycle.
