The following target investment asset allocation, as set forth in the Plan's investment policy, provides diversification and is intended to meet the Plan's long-term investment goals without undue risk.  The investment policy was developed and is continually monitored by the Board of Trustees together with its investment advisor, Gallagher Fiduciary Advisors.

Equities 50%:  (Domestic - 35%, International - 15%)  The stock portfolios are managed by selected professional investment management firms and diversified among growth and value styles or invested in index funds.

Fixed Income 20%:  Diversified among government securities, investment grade corporate bonds, high yield bonds, mortgage securities, non-U.S. bonds and absolute return strategies, and managed by specialist bond investment management firms.

Real Estate 10%:  Diversified among real estate sectors and managed by professional real estate firms in three different commingled funds.

Alternate Strategies 9%:  The Plan uses a hedge fund of funds, which invests in approximately 30 individual hedge funds, to diversify across various strategies and among numerous selected hedge fund firms.  The fund of funds manager uses its expertise to select the most suitable hedge funds, construct the portfolio and monitor performance.  The Plan also invests in a credit long/short fund.

Private Equity 5%:  The Plan uses professional investment management firms to select and monitor the private equity investments.  Currently, the Plan is invested in 12 partnerships, each of which invests in numerous privately owned companies or in mezzanine debt

Commodities 6%:  The Plan uses an enhanced index, long-only single strategy fund run by a specialist commodities manager.

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