Asset Allocation The current investment program is based on an asset allocation and investment structure adopted by the Retirement Board. Asset allocation is a process used to determine the optimal distribution of funds among various types of asset classes that offer a high probability of achieving investment objectives within the confines of a pre-determined level of risk. The following table represents the Funds' current asset allocation. Total Fund Target Asset Allocation Asset Class Target Domestic Equity (US Stocks) 40% International Equity (Non-US Stocks) 20% Domestic Fixed Income 25% Private Equity 10% Real Estate 5%