calpers supplemental income 457 plan
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SMART INVESTING FOR YOUR RETIREMENT.
CCaallPPEERRSS SSuupppplleemmeennttaall IInnccoommee445577 PPLLAANN
E N R O L L M E N T K I T
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https://calpers.ingplans.com 1-800-260-0659
Jump Start Your Future
Experienced investors know that a key principle to investing for
retirement is to start as soon as you can and contribute as much
as you can. In doing so you are working to ensure your ability to
live the life you want when in retirement.
Ready to Enroll?
Two steps and you’re on your way with the
CalPERS Supplemental Income 457 Plan
keeping it together!If you have an eligible Individual Retirement
Account (IRA) or retirement account from a
previous employer, you may want to consider
moving those funds into your CalPERS
Supplemental Income 457 Plan account to
take full advantage of all that CalPERS has
to offer. Complete the enclosed Rollover
Form to start the rollover process.
Deciding how much to contributeYou may enroll in the CalPERS Supplemental Income
457 Plan at any time, as there is no waiting or enrollment
period with this plan.
Now, deciding how much to save is a personal decision.
It is unique to you in that it is based on your retirement
goals, your resources, and the amount of time you have
to invest.
Maximum annual contribution limit— 100% of income, up to$17,000 for 2012.* See page 10 for details on the Age 50 Catch-Up and Three-Year Special 457(b) Catch-Up Provisions.
Use the table below as a guide, or visit the Financial Resource Center on the Plan Web site and use the Plan Savings Calculator to help you calculate your contribution amount.
Your contributions
All contributions are made through payroll deductions. The CalPERS Supplemental Income 457 Plan is flexible so you may stop, increase or decrease your contributions as often as your employer allows without penalty or cost. To make changes, complete and submit a Participant Change
Authorization Form to your employer’s benefit coordinator.
*Visit the Plan Web site under the Plan Information section for further information and current IRS annual contribution limits.
step one... step two...
Sample contribution amounts based on a percent ofAnnual Salary as a Bi-weekly Dollar Contribution
AnnualSalary 2% 5% 10% 15% 20% 25%
$20,000 $15 $38 $77 $115 $154 $192
$30,000 $23 $58 $115 $173 $231 $288
$40,000 $31 $77 $154 $231 $308 $385
$50,000 $38 $96 $192 $288 $385 $481
$60,000 $46 $115 $231 $346 $462 $577
$70,000 $54 $135 $269 $404 $538 $634
Complete the Employee New EnrollmentForm and the Beneficiary Designation Form
Return both to your Personnel/Payroll Department and you’re on your way!
Investment Elections
• Once enrolled in the Plan, you can choose your own investmentelections from a series of Core Funds, Target Retirement DateFunds, and Risk-Based Funds that suit your personal investmentstyle and goals. You will receive a confirmation notification andPassword shortly after enrollment.
• You can make your own investment elections by accessing youraccount on-line at https://calpers.ingplans.com or by callingthe toll-free plan information line at 1-800-260-0659 within ashort period after submitting a completed Enrollment Form.Changes to how your contributions are being invested, includingrebalancing or requesting fund transfers, must be done by ac-cessing your account on the Plan website or by calling the Plan In-formation Line.
• The Target Retirement Date Funds have been designated by theBoard as the default investment under the Plan. Your contribu-tions will be invested in the appropriate Target RetirementDate Fund only if you do not make an affirmative investmentelection prior to the date the first contributions are depositedto your account. The appropriate Target Retirement Date Fundis based on your date of birth most closely corresponding withyour retirement date assuming you will retire at age 59.6 and 7 of this brochure.
Prior to investing you should carefully review all fund informationand objectives and consult with an outside investment adviser. Additional fund information can be obtained by calling 1-800-260-0659, or by visiting the Plan Web site.
Your Password
You will receive a Password in the mail shortly after you have completed the enrollment process. You will need your Password toaccess your account information and to make transactions eitheronline or through the Plan Information Line.
Password Reset CapabilitiesWhen you log on to the Plan Web site for the first time, you will be prompted to establish a Username and to choose security questions to establish Password reset capabilities in case you forget,or misplace your Password in the future. If you misplaced yourPassword and haven’t established Password reset capabilities, there are two ways to obtain one.
• Online at https://calpers.ingplans.com, and click on the link Forgot Your Password? in the User Login box.
• Call 1-800-260-0659, and provide your Social Security number. Your Password will be mailed to your address on record within three business days.
• World-class investment management and plan de-sign
— Easy to understand, based on principles smart investors use
• Expertise in asset protection and performance— Investment staff focused on CalPERS products
• Solid investment Plan design
— Full range of options by asset class, risk tolerance,age and time of distribution.
— Ability to create customized investment fund combinations
— Access to best-in-class external investment managers
• Superior bargaining power
— Superior economies of scale keep costs low
— Simple transparent fee structure
CalPERS — designed for participant success
The CalPERS commitment continues —
to offer you financial security, value,
lower costs and quality customer service.
Congratulations on your choice to participate in the CalPERS Supplemental Income 457 PlanThe key to being a smart investor is to take advantage
of the opportunities made available to you. All employ-
ees whose employers have adopted the CalPERS Supple-
mental Income 457 Plan (the “Plan”) are immediately
eligible to join the Plan and there are no minimum
service requirements to fulfill.
It’s never too late to start, and it’s never too small an
amount to invest when it comes to putting your hard
earned money to work for your own benefit! Today,
most financial experts agree that you will need 70% or
more of your current income to maintain your current
lifestyle in retirement. Chances are you’re going to need
to rely on personal savings, over and above your Social
Security and pension benefits, when it comes to retiring
with your income goals. Participating in the CalPERS
Supplemental Income 457 Plan is an excellent way to
help achieve those financial goals for retirement.
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Soar to new heights with the power of CalPERS...
First with the power of pre-tax contributions
The CalPERS Supplemental Income 457 Plan is a voluntary savingsprogram that allows you to defer an amount from your paycheckbefore you pay taxes on it. By making pre-tax contributions, yourtaxable income is lower and the amount taken out of your paycheckfor taxes actually decreases.
Then with the power of tax-deferral
Tax-deferred compounding is your money earning money. By investing with CalPERS, your retirement savings get a powerful boost. Your investments and their earnings get to grow over time without the burden of taxes. With CalPERS you don’t pay income taxes on your investments until you begin taking withdrawals, usually in retirement when your taxbracket is presumably lower.
The power of tax-deferral at work
More of your money stays in your account working for you overtime, growing faster than it could in an account where you paytaxes on the monies going in, and each year on the earnings.
Keep more of what you earn
Not saving Saving with CalPERS
Annual salary $35,000 $35,000
Monthly gross pay $2,917 $2,917
Less CalPERS Contribution $ 0 $300
Taxable Income $2,917 $2,617
Taxes withheld $694 $619
Monthly paycheck* $2,223 $1,998
PAYChECk DIFFERENCE: ONLY $225
here, the $300 contribution’s real cost is just $225 — the amount the paycheck went down. By saving withCalPERS you save in your taxes paid each month, and you have money in your account working to grow over time in a tax-deferred account.
* This paycheck example shows the impact of monthly contributions of$300 on an individual earning $35,000 annually. Calculations assumethe 25.78% effective tax rate.
$250,000
$200,000
$150,000
$100,000
$50,000
$0$33,869 $36,352
$89,076$101,454
$182,495
$218,041
Without CalPERS Supplemental Income 457 Plan
With CalPERS Supplemental Income 457 Plan
Assumptions:
• $300 monthly investment over 10, 20, 30 years
• 6% annual rate of return
• After tax-account taxed at 25.78% effective tax rate
This illustration is for hypothetical purposes only, and is not indicative ofthe performance of any specific investment; actual results may vary.
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the bottom lineContribute as much as youcan for as long as you can.Not only will you have morein your account, but you willhave spent less to earn it!
Just starting out in your career? You might think you can’t afford to put anything aside. Making small sacrifices now, like bringing your lunch to work or skipping dinner out once a week can make a big differenceover the long term. By investing early, your savings can grow without the burden of taxes for a longer periodof time. In the future you may want to consider increasing your contributions as your salary increases.
Nearing retirement? It’s never too late to start taking advantage of the power of CalPERS! When startinglater in life it’s important to consider your investment and tax-shelter strategies carefully. Due to a shorter investment time frame you may need to be more aggressive with your contributions to shelter more of yourassets from taxes.
Pair the power of CalPERS with the power of time
The sooner you start investing the better off you will be in the long run. By investing early on a regular basis, and letting your investments grow with the power of CalPERS, you have a greaterlikelihood of meeting your retirement income needs than youwould if you save for years without the benefits of CalPERS.
The magic of compoundingwith the value of time
The longer you have to invest, the longer you have to watch your savings grow.
Assumptions:
• $300 monthly contributions for 35 years
• 6% annual rate of return
The power of time vs. the cost of waiting — who wins?
Start now and invest monthly contributions of $300 for 15 years,then stop to let the magic of compounding go to work on your investments for the next 20 years.
• Total contributions $54,000
• Value of account after 35 years $277,393
Wait 15 years and then begin making monthly contributions of $300 for 20 years
• Total contributions $72,000
• Value of account after 35 years $136,694
5 10 15 20 25 30 35 Years$18,000 $36,000 $54,000 $72,000 $90,000 $108,000 $126,000 Total contributions$2,846 $12,742 $32,074 $64,032 $112,887 $184,354 $286,081 Earnings
$20,846 $48,742 $86,074 $136,032 $202,887 $292,354 $412,081 Total account value
This illustration is for hypothetical purposes only. It assumes an annual rate of return of 6% and is not indicative of the performance of any specific investment;actual results may vary.
This illustration is for hypothetical purposes only and is not indicative of theperformance of any specific investment; actual results may vary.
$450,000
$400,000
$350,000
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
Starting early pays off!
$300,000
$250,000
$200,000
$150,000
$100,000
$50,000
$0
START NOW
WAIT TO START
Investment Earnings Total Contributions
Investment Earnings Total Contributions
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The Asset ClassesThere are three basic asset classes: cash equivalent, bond, andstock. Each asset class has specific risk and return features to consider. There are also asset-allocation investments that contain amixture of any of the three asset classes.
Investment risk vs. inflation risk
Investment risk is generally associated with the potential that investments may go down in value as a result of market volatility.Stocks are considered riskier investments because they tend to fluctuate in value more than other investments like bonds. Conservative investments may help reduce investment risk, but over the long term they can expose you to another kind of risk —inflation risk. When investments are earning less than the rate of inflation, they are actually losing purchasing power.
The importance of diversification & asset allocation
Diversification helps to reduce investment risk by spreading your assets among different investments, or the basic asset classes. Combining different types of investments may help youmanage risk and maximize your return potential by smoothing out fluctuations in the stock market, while still taking advantage of the market’s potential for higher returns.
Creating your investment strategy
It is important for you to determine how long you plan to keep yourmoney invested, and your willingness to stay invested during marketups and downs, and create a portfolio appropriate for that strategy.A good strategy is to assume as much investment risk as you are comfortable with, without exposing yourself to inflation risk.
CalPERS — helping participants become smart investors
In today’s rapidly changing financial
markets, it’s more important than ever
to make sound, well-educated investment
decisions. Before you start you should
first understand a few investment basics.
ASSETS CLASS BENEFIT RISK
Cash Equivalent
• Short-Term InvestmentFund
Designed to protect original investment or principal
May not keep pace with inflationover time
Bond
• PIMCO Short-TermBond Fund
• CalPERS Total Return Bond Fund
• CalPERS TreasuryInflation Protected Securities Fund
Generally offergreater incomepotential thancash equivalent investments and not as muchrisk as stocks
Sensitive to interest ratefluctuations
Stock
• CalPERS S&P 500 Equity Index Fund
• CalPERS Small & MidCap Equity Index Fund
• The Boston CompanySmall/Mid Value Fund
• The Boston CompanySmall/Mid Growth Fund
• CalPERS InternationalIndex Fund
• Pyramis Select International Fund
Historically, stocks have provided greaterlong-term returns than cash equivalentinvestments andbonds
Due to market volatility the value of stocks will go up anddown overtime
GREATERPOTENTIALREWARD
LOWERRISK
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Your CalPERS investment optionsThe CalPERS Supplemental Income 457 Plan offers a wide variety of investment fund options. The Fund Performance Summary included in this kit compares the fund performance and benchmarks of the various fund options and discloses fees.
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Asset Allocation Funds
These target retirement date and risk-based funds are ideal forparticipants looking for a simple investment solution. Either stylegreatly simplifies your decision-making process regarding how to properly diversify your investments for meeting your own personal retirement savings goals.
Target Retirement Date Funds
The easiest of the asset allocation funds, these funds take much ofthe work and worry out of managing your account. With the targetretirement date funds you make one decision — when you plan toretire – then let the fund do the rest.
• They are designed to help build value in the early years, and reduce risk as you approach retirement.
• You can avoid common obstacles to investment success:
— the temptation to buy and/or sell with market swings
— the potential for asset overlap
— lack of investment diversification
• They automatically adjust over time, gradually becoming moreconservative as you get closer to retirement. Your investmentsstay tailored to your age and investment time horizon.
• Each maintains a diversified portfolio utilizing a ‘fund of funds’approach that helps reduce the impact of market volatility.
• They’re easy to choose — just select the one with the date closest to when you anticipate retiring.
Risk-Based Funds
These “balanced” asset allocation funds are appropriate for those looking for a bit more input into their investment decisions.They provide a mix of investments allocated among different investment classes in pre-established proportions suited to specific investor profiles. By self-identifying your risk tolerance, you can invest in the balanced fund that best suits your profile as a conservative, moderate or more aggressive investor. Over time you make the decision on when to shift to a more conservative fund as you approach retirement.
For the most up-to-date Fund information please refer to the Fund Fact Sheets and Performance Summary Report on the Plan Web site in the Plan Investments section.
Target Target Retirement Retirement DatDate Funds Date
CalPERS Target Retirement In retirementIncome Fund
CalPERS Target Retirement 2003 through 20072005 Fund In retirement
CalPERS Target Retirement 2008 through 20122010 Fund In or Near retirement
CalPERS Target Retirement 2013 through 20172015 Fund
CalPERS Target Retirement 2018 through 20222020 Fund
CalPERS Target Retirement 2023 through 20272025 Fund
CalPERS Target Retirement 2028 through 20322030 Fund
CalPERS Target Retirement 2033 through 20372035 Fund
CalPERS Target Retirement 2038 through 20422040 Fund
CalPERS Target Retirement 2043 through 20472045 Fund
CalPERS Target Retirement 2048 or later2050 Fund
68%30%2%
56%40%4%
50%46%4%
41%53%6%
32%61%7%
21%70%9%
13%77%10%
6%84%10%
5%85%10%
5%85%10%
5%85%10%
68%30%2%
Risk-Based Risk Funds Level
CalPERS Conservative ConservativeAsset Allocation Fund
CalPERS Moderate ModerateAsset Allocation Fund
CalPERS Aggressive AggressiveAsset Allocation Fund
BondStock Other*
BondStock Other*
33%60%7%
5%85%10%
* Other consists of Commodities and global REITs.
Core Funds
The CalPERS Supplemental Income 457 Plan offers a line-up of core investment options for complete asset coverage and the opportunity for a well-diversified portfolio. These funds span therisk-return spectrum, without duplication, providing you with aclear-cut choice between investments representing different objectives, risk tolerances, and time horizons.
The risk levels shown in the table below are for general guidelinepurposes only and are categorized based on investing in one fund.Before investing, carefully consider the funds' investment objectives,risks, fees, and expenses. The fund fact sheets contain this andother important information.
Participant Fees
Minimizing expenses is always an overall objective of CalPERS. Wecontinue to provide investments and services at a low cost using asimple fee schedule. There are costs associated with investing in theunderlying investment fund options offered under the CalPERS Supplemental Income 457 Plan. CalPERS aims to keep fees low, and weare proud that all of the investment fund options have an annual fee ofless than one percent, prorated daily based on your account balance.
One way we maintain our low fee structure is by not participatingin sales incentive or commission programs. All of the Core andAsset Allocation Funds are no-load, no transaction fee funds. For the most up-to-date Fund information about the fees associ-ated with each investment offering please refer to the Fund FactSheets or access Performance Summary Reports on the PlanWeb site in the Plan Investments section under Fund Performance.
be a smart investor!
Visit the online Financial
Resource Center for tools
and educational resources on
retirement planning, personal
finance, estate planning and
family finance.
prior to investingThis information is for general discussion purposes only. You should carefully review all fund information, including investment objectives, strategies, performance and expenses you may consider consulting with an outside investment advisor. The current investment fund options are either internally managed funds or separate accounts, not registered mutual funds; therefore a prospectus is not available. Please review the Fund Performance Summary and the individual Fund Fact Sheets. Fund information can be obtained by calling 1-800-260-0659, or by visiting the Plan Web site.
CONSERVATIVE
AGGRESSIVE
RISK LEVEL
Self-Managed Account
Your employer must adopt the Self-Managed Account (SMA) option in order for you to participate. The SMA is a brokerage account that offers you the ability to invest in Mutual Funds andCertificates of Deposit (CD’s). You have to apply for and set up aseparate SMA account before you may trade mutual funds.
Please confirm with your employer if they have adopted the SMAoption. The SMA application package is available through youremployer. In the package will be instructions on completing the application and the fees associated with the SMA. After you’vemailed your completed application to State Street Global Markets,you’ll receive a welcome letter with your brokerage account number.
Conservative Asset Class Category
Short-Term Investment Fund Cash Equivalent Short-Term Fixed Income
PIMCO Short-Term Bond Fund Bond Short-Term
Moderate Asset Class Category
CalPERS Total Return Bond Fund Bond Intermediate
CalPERS Treasury Inflation Protected Securities Fund Bond Inflation Protected
Aggressive Asset Class Category
CalPERS S&P 500 Equity Index Fund Stock Large Cap Index
CalPERS Small & Mid Cap Equity Index Fund Stock Small/Mid Cap Index
The Boston Company Small/Mid Value Fund Stock Small/Mid Cap Value
The Boston Company Small/Mid Growth Fund Stock Small/Mid Cap Growth
CalPERS International Index Fund Stock International Equity Index
Pyramis Select International Fund Stock International Equity
Core FundOfferings
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Plan Web site account accessYou will need your Password to access your account in order tocomplete any transactions, to make any changes to your account,or to change any personal information. See page 1 for details onhow to obtain and reset your Password.
Confirmation of changesYou will be mailed a confirmation within three business days following any changes made to your account. If you do not receive a confirmation in a timely manner, please contact the Plan Information Line to ensure that your changes wereproperly made to your account.
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questions & requestsCalPERS Customer Service Associates are available Monday – Friday,
6:00 a.m. to 5:00 p.m. Pacific Time (except stock market holidays) to assist
you with transactions, information about your account or any other general
CalPERS Supplemental Income 457 Plan questions and requests.
Account management is at your fingertips with CalPERS 24/7 athttps://calpers.ingplans.comor 1-800-260-0659
The CalPERS Supplemental Income 457
Plan gives you access to your account to
manage your Plan investments and manage
your personal information 24 hours a day,
7 days a week by logging in to the Plan
Web site at https://calpers.ingplans.com,
excluding any period of time dedicated
to scheduled standard system maintenance.
Managing your Plan investments
Changing your investment selections
To change the way your current or future contributions are allocated among the various investment fund options, simply log on to the Plan Web site or call the Plan Information Line.CalPERS does not accept these types of changes by form.
Transferring money between investment fund options
You may transfer money between investment fund options, rebalance your portfolio or change your allocation at any time, as often as you like, at no additional cost. You may make thesetransactions by accessing your account online at the Plan Web site,or by calling the Plan Information Line.
Automatic RebalancingYou may elect to have your current funds rebalanced byCalPERS on a quarterly, semi-annual, or annual basis, to match your current investment election percentages. This feature helps to keep your account weighted to the asset allocation model you established when making your investment elections.
Reallocation of Existing BalancesYou may reallocate existing account balances in one simple transfer transaction. This combined transfer will generate one easy-to-read confirmation statement.
Changing your contribution amount
To make changes to the amount you are contributing to the Plan,you will need to complete a Participant Change Authorization
Form and submit it to your employer’s benefit coordinator.
Account Statements
Quarterly statements are mailed after the end of each calendarquarter showing your contributions, any interest and investmentgains or losses, and your account balance. You can access account information on the Plan Web site or by calling the Plan Information Line.
In addition, you may generate a customized statement online, including the most recent 24 months of history. Account valuesfluctuate with market conditions, and at any time, the value of an account may be worth more or less than the original amount invested. Fund prices are updated daily and can be found on thePlan Web site or by calling the Plan Information Line.
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Managing your personal information
Designation of Beneficiary Information
You are required to submit your beneficiary designation and theirinformation with your initial enrollment into the Plan. You may thenview your beneficiary designation information at any time online inthe My Account section of the Plan Web site. Please be advised thatfailure to meet state law requirements with respect to your beneficiarydesignation may result in your beneficiary designation becominginvalid and payments going to someone other than your designatedbeneficiary.
Beneficiary election, if other than spouseIf initially, or at any time in the future, you choose to name a beneficiary other than your spouse or registered domesticpartner, your spouse or domestic partner will need to provide a notarized signature on the Beneficiary Designation Form
acknowledging the change in beneficiaries you are designating.
Beneficiary change, if other than spouseTo name or change a beneficiary other than your spouse orregistered domestic partner, if applicable, you must completethe appropriate section of the Beneficiary Designation Form.
Changes to Personal Information
To make changes to your personal information, you will need tocomplete a Participant Change Authorization Form and submit it to your employer’s benefit coordinator: This includes the following changes:• address• name• marital status• domestic partner status• contact information
You may download a copy of the form from the Plan Web site orcall the Plan Information Line to request that one be mailed to you.
Additional Forms
You may obtain copies of any of the forms or documents includedin this kit by downloading or printing copies from the Plan Web site. You may also request that copies be mailed to you by calling the Plan Information Line, or by contacting your Plan Account Manager.
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Contribution Limits and Catch-Up Provisions
Contributions are subject to IRS regulations. You may increase or decrease, and stop or restart your contributions at any time bycompleting a Participation Change Authorization Form and submitting it to your Personnel or Payroll Department.
Maximum annual contribution — 100% of income, up to $17,000 for 2012.*
Catch-Up Provisions
Age 50 Catch-Up— allows a participant who reaches age 50 before the end of the tax year to make additional contributions of$5,500 in 2012, for a maximum of $22,500.*
Three-Year Special 457(b) Catch-Up— allows a participant whomeets special conditions and has not been contributing the maximum to contribute up to twice the maximum annual contribution amount during the three years prior to their NormalRetirement Age. The 2012 maximum is $34,000.* For help with thisprovision use the Three-Year Special 457(b) Catch-Up Work-
sheet found on the Plan Web site or call the Plan Information Line.
In compliance with IRS regulations, the Catch-Up Provisions cannotbe combined in any year, so eligible participants are limited to contributing the higher of their Age 50 Catch-Up Increase or theirThree-Year Special 457(b) Catch-Up Contribution.
*Visit the Plan Web site under the Plan Information section for further information and current IRS annual contribution limits.
Tax Credit
To encourage low- and moderate-income individuals to save morefor the future, the government offers a tax credit for contributionsto eligible retirement savings plans, including the CalPERS Supplemental Income 457 Plan. You may be eligible for a credit on your federal taxes equal to a percentage (up to 50%) of the first $2,000 you invest in the Plan. The credit is available if your“adjusted gross income” does not exceed $57,500 if you aremarried and file a joint return or $28,750 if you are single ormarried and file a separate return. The actual amount of yourcredit is based on your tax filing status and adjusted gross income(AGI) as shown below:
Tax Credit Joint Return AGI Single (other filers) AGI
50% Less than $34,500 Less than $17,250
20% $34,501 - $37,500 $17,251 - $18,750
10% $37,501 - $57,500 $18,751 - $28,750
0% $57,501 or more $28,751 or more
If you take this tax credit you can still deduct your contributions to qualified retirement savings plans as allowed under current law. To find out more information or to see if you qualify, pleasecall the Plan Information Line at 1-800-260-0659, and speak witha Customer Service Associate.
CalPERS Plan Features
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CalPERS distribution options
Distribution Flexibility
You may begin taking distributions from your CalPERS Supplemental Income 457 Plan account at any time once you retire or separate from employment. Your distribution options include:• a lump sum check• a partial lump sum payment• payments for a specific time period• payments based on your life expectancy, or you and yourspouse’s joint life expectancy
• rollover account to another plan or IRA
Monthly, quarterly, semi-annual or annual payment options areavailable and you may change your payment frequency wheneveryou need to. You may also increase, reduce or stop your benefitpayments at any time. All distributions are taxable as ordinary income in the year received. There is no early withdrawal penalty in the CalPERS Supplemental Income 457 Plan. Any non-457money rolled over from other sources may be subject to early withdrawal penalties.
Distribution Requests
You will need to submit your initial Distribution Request Form toyour employer’s benefits coordinator so they may verify that youhave separated from employment. Your employer will forward theinitial Distribution Request Form to the Plan. Subsequently, youmay submit a Distribution Request Form directly to the Plan at the address on the form to make distribution modifications. Youremployer’s signature is not needed for distribution modifications.
To avoid delays with processing your Distribution Request, your employer must submit a Notification of Separation from Employment Form to the CalPERS Supplemental Income 457 Plan.
Required Minimum Distributions
The federal tax law also requires you to begin taking distributionsfrom your CalPERS Supplemental Income 457 Plan account nolater than April 1 of the year following the year you reach age 70½,unless you are still employed. If you remain employed beyond April 1following the year in which you reach age 70½, payment must beginby April 1 in the year following the year you end your employment.Please visit the Plan Web site for the most current information.
Tax Liability on Distributions
20% is withheld for federal tax purposes, as well as 2% for statetaxes, at the time of payment on all distributions as they aretreated as ordinary income in the year the money is paid and aresubject to federal and state income taxes. A rollover to another eligible retirement plan or a traditional IRA is not subject to tax withholding.
Purchasing Service Credit
You may choose to use your investments in the Plan to purchasePension Service Credit. Call the Plan Information Line and speakwith a Customer Service Associate for more information.
In-service Withdrawals
The CalPERS Supplemental Income 457 Plan is a retirement savings plan and not designed as a source to pay for emergencyexpenses. Generally, you may not withdraw money from your planaccount while you are still employed by your current employer. You may, under qualifying circumstances request an emergencywithdrawal prior to separation from employment.
Federal tax law severely limits emergency withdrawals to very specific emergency circumstances. Supporting documentationmust accompany all requests, and the amount withdrawn cannotexceed the amount needed to satisfy the emergency. Money you withdraw through an Unforeseeable Emergency Withdrawal is subject to income taxes.
Unforeseeable Emergency Withdrawals may be made only for the following reasons:
• Hardship due to sudden and unexpected illness or accident ofthe participant or a dependent that is not covered by insuranceor other financial resources
• Loss of property due to casualty that is not covered by insuranceor other financial resources
• Other similar extraordinary and unforeseeable circumstancesand events not covered by insurance or other financial resources
Unforeseeable Emergency Withdrawals are not available for purposes such as home purchases or tuition expenses. An Unforeseeable Emergency Withdrawal request may be denied if youcan relieve the hardship with other financial resources or by ceasingyour contributions to the Plan. More guidelines on UnforeseeableEmergency Withdrawals are available on the Plan Web site.
Loan Privilege
You may borrow from your Plan account balance to assist you inmeeting your financial needs only if your employer has adoptedthe Loan Provision of the Plan. All loans, plus interest, must be repaid within five years. Your loan payments, both principal and interest, will be credited to your account. Your account will becharged a one-time loan set-up fee in the amount of $50, with noadditional annual fee.
Limits: One outstanding loan is permitted at any one timeMinimum loan amount: $1,000Maximum loan amount: 50% of your account value, not to exceed $50,000
For more information or to see if your employer has adopted theLoan Provision, call the Plan Information Line and speak with aCustomer Service Associate.
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CalPERS provides financial and health security to California public employees, retirees, beneficiaries and their
families. For over fifteen years, we have been offering a Deferred Compensation program to local employers
and their employees.
Designed for participant success
• Promotes smart investing principles
• Easy payroll deduction of contributions
• Contributions are made on a pre-tax basis and investments grow tax-deferred
• Withdrawals are taxed as ordinary income when distributions begin
• Simple fee structure
• Experienced retirement educators help participants define retirement goals, integrating them with existing defined benefit planning
• Access to financial learning resources
— Tools for retirement planning, personal finance, estate planning and family finance
Easy account access, 24/7 at https://calpers.ingplans.com or 1-800-260-0659
• Participant account information and management online orthrough the Plan Information Line
— both are easy to access and simple to use
• View, download, and print account statements, including 24 months of history
• Automatic account rebalancing
— Automatically rebalances an account to current investment elections
• Reallocation of account balances
— Redistribute fund balances across multiple funds in one simple transaction
• Download forms and stay up-to-date on Plan rules
• Download account data to Quicken® & Microsoft® Money
https://calpers.ingplans.com 1-800-260-0659
for more information call:Customer Service Associates are available
Monday – Friday, 6:00 a.m. to 5:00 p.m. Pacific Time
(except stock market holidays) to assist you with transac-
tions, information about your account or any other gen-
eral CalPERS Supplemental Income 457 Plan questions
and requests by calling the Plan Information Line.
additional formsYou may obtain copies of any of the forms included in
this kit by downloading or printing copies from the Plan
Web site at https://calpers.ingplans.com. You may also
request that copies be mailed to you by calling the Plan
Information Line at 1-800-260-0659 or contacting your
Plan Account Manager.
12
CalPERS Supplemental Income 457 Plan
1-800-260-0659
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SMART INVESTING FOR YOUR RETIREMENT.
https://calpers.ingplans.com
1-800-260-0659
https://calpers.ingplans.com1-800-260-0659
SMART INVESTING FOR YOUR RETIREMENT.
CalPERS Supplemental Income457 PL AN
E N R O L L M E N T K I T
CalPERS 457 Enroll 11.12
SMART INVESTING FOR YOUR RETIREMENT.
https://calpers.ingplans.com
1-800-260-0659
Participant Information
Name (Last / First / Middle Initial) Social Security Number Date of Birth
Address City State Zip
Work Telephone Home Telephone Email Address
Marital Status: Are you legally married or in a domestic partnership?
Yes, I am legally married or in a domestic partnership No, I am not legally married or in a domestic partnership
Employer Information
Employer Name
CalPERS Supplemental Income 457 Plan
Employee New Enrollment Form
CA-ENR-11.12
Contribution Election InformationEnter the dollar amount or percentage of pay you wish to contribute to the CalPERS Supplemental Income 457 Plan per pay period. Your contribution will commence the month following the date on which you make this election unless you specify a later effective date.
I elect to enroll in the CalPERS Supplemental Income 457 Plan and authorize my Employer to deduct $__________ or _______% from my gross wages and deposit this amount into my account in the Plan.
Contributions will be deducted per pay period effective: Next qualifying pay period or Specific date ___/___/___.
To make future changes to the amount of your contribution, to suspend contributions, or to make changes to your personal information, complete the Participant Change Authorization form found on the Plan Web site.
Investment Elections• Once enrolled in the Plan, you may choose your own investment elections from a series of Core Funds, Target Retirement Date Funds, andRisk-Based Funds that suit your personal investment style and goals. You will receive a confirmation notification and Password shortly after en-rollment. You can make your own investment elections by accessing your account on-line at https://calpers.ingplans.com or by calling the toll-free plan information line at 1-800-260-0659 within a short period after submitting a completed Enrollment Form
• The Target Retirement Date Funds have been designated by the Board as the default investment under the Plan. Your contributions will be invested in the appropriate Target Retirement Date Fund only if you do not make an affirmative investment election prior to the date thefirst contributions are deposited to your account. The appropriate Target Retirement Date Fund is based on your date of birth most closely cor-responding with your retirement date assuming you will retire at age 59.
• Investing involves market risk, and it is possible to lose money while investing in a fund. Please refer to the Employee Enrollment Kit and FundFact Sheets for more information.
Optional — Catch-up ProvisionYou may only use ONE catch-up option during the tax year. Only complete if you wish to use a catch-up provision and are eligible.
I will be age 50 or older in the current tax year and am using the Age 50 Catch-up method. I will be contributing more than the annuallimit of $17,000 (subject to IRS limits of $5,500 for 2012).
I am using the Special 457 Catch-up method. This feature allows me to contribute more than the normal maximum annual deferralamount—an additional $17,000 in 2012 (for a total contribution of $34,000) — to “Catch-Up” for earlier years when I did not contributethe maximum amounts allowed. I must complete the Special 457 Catch-Up Method Worksheet found on the Plan Web site.
SignaturesBy signing below, • I hereby authorize my employer to deduct from my payroll the contribution amount indicated for deposit into the Plan. • I understand and agree my future contributions will be deducted from each paycheck on a before-tax basis and invested in the appropriateTarget Retirement Date Fund only if I do not make an affirmative investment election prior to the date of the first contributions.
• I understand and agree the default investment designation I have authorized will remain in full force and effect until I authorize a change inaccordance with the provisions of the Plan and the procedures set forth in this form.
• I acknowledge that I have received and had an opportunity to review the Employee Enrollment Kit and Fund Fact Sheets booklet.
Participant’s Signature Date Employer’s Signature Date
Agency Plan Number: 45 -
EMPLOYER TO COMPLETE.
https://calpers.ingplans.com 1-800-260-0659 P.O. Box 5166 / Boston, MA 02206-5166
C
California Public Employees’ Retirement System (CalPERS) CalPERS Supplemental Income 457 Plan (the “Plan”) https://calpers.ingplans.com
P.O. Box 5166 Boston, MA 02206-5166
1-800-260-0659
BENEFICIARY DESIGNATION FORM
Page 1 of 2
CalPERS Supplemental Income 457 Plan
Complete this form to designate beneficiary (ies) who will receive your CalPERS Supplemental Income 457 Plan benefits in the event of your death. New Enrollment Change of BeneficiaryI. PARTICIPANT INFORMATION Last Name
First Name Middle Initial
CalPERS ID Social Security Number Birth Date
Mailing Address (number and street) City
State Zip Code
Telephone Number (work)
Telephone Number (home)
Email Address
II. EMPLOYER INFORMATION
Employer Name: Agency Plan Number: 45__ - __ __ __ III. BENEFICIARY INFORMATION In the event of your death, your 457 account will be paid to the primary beneficiary (ies) you name below. You may name a Trust as a primary or secondary beneficiary.
Print the beneficiaries’ names, social security numbers, and their relationship to you, their birth date and the percentages for each named beneficiary. The total percentages for BOTH of the primary and secondary beneficiary election must equal 100%. Whole integers only (example: you may not indicate 33 1/3%, or 30.5%).
At least one Primary Beneficiary (ies) designation is required in order to complete the enrollment process. The total allocated percentage for your Primary Beneficiary (ies) must equal 100%. If you are legally married or in a registered domestic partnership, but do not name your spouse or your domestic partner as your sole (100%) primary beneficiary, he or she may still be entitled to a community property share of your account. CalPERS cannot be responsible for a participant’s failure to properly designate a beneficiary in accordance with state law requirements. Please be advised that failure to meet state law requirements with respect to your beneficiary designation may result in your beneficiary designation being invalid and the payment of your account to someone other than your designated beneficiary.
If you choose to name a sole (100%) primary beneficiary that is not your spouse or domestic partner, your spouse or domestic partner will need to complete the spousal waiver section below acknowledging the beneficiary (ies) that you are designating. You and your spouse or domestic partner’s signature must also be notarized by a notary public. See the next page for notary signature.
PRIMARY BENEFICIARY (IES) (ATTACH SEPARATE SHEET IF NECESSARY) Last name First name Middle Initial
Social Security Number
(optional) Relationship to you Birth date Allocated Percentage
(must total 100% and be in whole integers)
% % % %
If your primary beneficiary(ies) is not living at the time of your death, your 457 account will be paid to the secondary (contingent) beneficiary(ies) you name below.
SECONDARY/CONTINGENT BENEFICIARY (IES) (ATTACH SEPARATE SHEET IF NECESSARY) Last name First name Middle Initial
Social Security Number
(optional) Relationship to you Birth date Allocated Percentage
(must total 100% and be in whole integers)
% % % %
V. SIGNATURES REQUIRED Participant’s Signature Date
Are you legally married or in a Domestic Partnership? no yes
Note: Spousal/Domestic Partner’s signature is required if not named as the sole (100%) primary beneficiary.
Spousal/Domestic Partner Waiver: I understand that I have not been named as the sole (100%) primary beneficiary and that in signing below, I have waived my right to receive the account balance or benefits payable from this Plan in the event of my spouse’s or domestic partner’s death. Signature of Spouse or Domestic Partner: Date
CA-BEN_DES-1011
C
California Public Employees’ Retirement System (CalPERS) CalPERS Supplemental Income 457 Plan (the “Plan”) https://calpers.ingplans.com
P.O. Box 5166 Boston, MA 02206-5166
1-800-260-0659
BENEFICIARY DESIGNATION FORM
Page 2 of 2
CalPERS Supplemental Income 457 Plan
COMPLETE ONLY IF YOU HAVE NOT CHOSEN TO NAME YOUR SPOUSE AS PRIMARY BENEFICIARY
State of California
County of ________________________________________________________________________________________
On __________________________before me,___________________________________________________________ Name & Title of Officer
personally appeared,______________________________________________________________________ and ___________________________________________________________________________________
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under penalty of perjury under the laws of the State of California that the foregoing paragraph is true and correct.
Notary Seal
Witness my hand and official seal
_____________________________________________________________________________________________________ Signature of Notary Public Date
CA-BEN_DES-1011
California Public Employees Retirement System (CalPERS) CalPERS Supplemental Income 457 Plan (the Plan ) https://calpers.ingplans.com
P.O. Box 5166
Boston, MA 02206-5166
1-800-260-0659
ROLLOVER FORM
REV1012 PR450001ROLL45N Page 1 of 3
CalPERS Supplemental Income 457 Plan
For Rollovers Into the CalPERS Supplemental Income 457 Plan From Another Type of Plan [IRA, 401(a), 401(k), or 403(b)]*
I. PARTICIPANT INFORMATION Last Name First Name Middle Initial
CalPERS ID
Social Security Number
Birth Date
Mailing Address (number and street)
City
State
Zip Code
Telephone Number (work)
Telephone Number (home)
Email Address
II. EMPLOYER INFORMATION
Employer Name: Agency Plan Number: 45__ - __ __ __ III. ROLLOVER TYPE
Check appropriate box for plan from which you are rolling money into the CalPERS Supplemental Income 457 Plan. (The Plan will accept rollover assets from the following types of tax-deferred plans):
Individual Retirement Account (IRA) 401(a) Plan 401(k) Plan 403(b) Tax Sheltered Annuity Estimated Amount of Rollover $ ______________________________ Note: Please attach a copy of your most recent statement from the resigning trustee.
NOTE: Your rollover cannot include any nondeductible (after-tax) employee contributions. To remain tax-deferred, the rollover to CalPERS must be made NO later than 60 days from the date you received distribution from your former plan.
IV. INVESTMENT ALLOCATION OF ASSETS
Enter the whole number percentage
that you want allocated among the Plan s investments in the table below. Your rollover of assets will be invested according to the allocation percentages you enter. The total of all investment allocations must equal 100%. The Target Retirement Date Funds have been designated by the Board as the default investment fund under the Plan. In the absence of an investment selection by you, or if your instructions are not clear, your rollover will be invested in the appropriate Target Retirement Date Fund based on your date of birth most closely corresponding with your retirement date assuming you will retire at age 59, using the birth date ranges shown in the table shown on Page 3.
Fund No. Fund Name
% Amt.
Fund No. Fund Name
% Amt.
CALPERS ASSET ALLOCATION FUNDS CORE INVESTMENT FUNDS
CalPERS Target Retirement Date Funds Fixed Income Funds 1A CalPERS Target Retirement Date Income Fund % 20 Short-Term Investment Fund %
1B CalPERS Target Retirement Date 2005 Fund %
47 PIMCO Short-Term Bond Fund %
1C CalPERS Target Retirement Date 2010 Fund %
37 CalPERS Total Return Bond Fund %
1D CalPERS Target Retirement Date 2015 Fund %
36 CalPERS Treasury Inflation Protected Securities Fund %
1E CalPERS Target Retirement Date 2020 Fund %
Equity Funds 1F CalPERS Target Retirement Date 2025 Fund %
40 CalPERS S&P 500 Equity Index Fund %
1G CalPERS Target Retirement Date 2030 Fund %
41 CalPERS Small/Mid Cap Equity Index Fund %
1H CalPERS Target Retirement Date 2035 Fund %
54 The Boston Company Small/Mid Value Fund %
1I CalPERS Target Retirement Date 2040 Fund %
53 The Boston Company Small/Mid Growth Fund %
1J CalPERS Target Retirement Date 2045 Fund %
42 CalPERS International Index Fund %
1K CalPERS Target Retirement Date 2050 Fund %
56 Pyramis Select International Fund %
CalPERS Risk Based Asset Allocation Funds
8G CalPERS Conservative Asset Allocation Fund %
8H CalPERS Moderate Asset Allocation Fund %
8I CalPERS Aggressive Asset Allocation Fund %
TOTAL PERCENTAGE OF AMOUNT ALLOCATED (MUST EQUAL 100%) %
This allocation will not affect any current or future investment elections. To make changes to your account such as fund transfers and asset allocation changes, you may access your account online at https://calpers.ingplans.com
or call the toll-free Plan Information Line at 1-800-260-0659.
V. SIGNATURES REQUIRED I certify that all of the assets to be invested as specified above are eligible for rollover to the CalPERS Supplemental Income 457 Plan. I understand that the CalPERS Supplemental Income 457 Plan will not be held responsible for any tax penalties that may occur because of an incomplete or late submission.
Participant s Signature Date
California Public Employees Retirement System (CalPERS) CalPERS Supplemental Income 457 Plan (the Plan ) https://calpers.ingplans.com
P.O. Box 5166
Boston, MA 02206-5166
1-800-260-0659
ROLLOVER FORM
REV1012 PR450001ROLL45N Page 2 of 3
CalPERS Supplemental Income 457 Plan
*See page 3 for instructions to complete the Rollover Process.
CalPERS Supplemental Income 457 Plan INVESTMENT FUND DESCRIPTIONS
Target Retirement Date Funds offer an automatically adjusting mix of investments designed to help build value in the early years and gradually becomes more conservative to protect that value as you approach retirement. Your investments stay tailored to your age and investment time horizon. Each maintains a diversified portfolio utilizing a fund of funds approach that helps reduce the impact of market volatility. They re easy to choose
just select the fund with the date closest to when you anticipate retiring and indicate the percentage value where indicated. Please note that these funds assume a retirement age of 59.
Target Retirement Date Funds are a series of diversified funds each of which has a pre-determined asset mix that will adjust over time until and often beyond the fund s target date (2005, 2010, 2015 .2050). The initial asset allocation is adjusted as a glidepath, or the manner in which the fund will slowly be reallocated over time, across all target retirement dates. This glidepath is designed to reduce the level of risk as the participant approaches retirement. The target date refers to the date the participant will reach retirement age, assuming a retirement age of 59. The CalPERS Supplemental Income 457 Plan offers 11 distinct Target Retirement Date Funds (the Fund or Funds ) as investment options under the Plan utilizing the concept of diversification through asset allocation. You may select the Fund that most closely matches the year you plan on retiring. The target strategies are a series of premixed investment options that focus on maturity and change as you approach retirement.
The Table below shows the Target Retirement Date Funds, including associated birth date range and target retirement date for each fund.
Fund No. Fund Name Birth Date Range Target Retirement Date
1A CalPERS Target Retirement Date Income Fund 01/01/1900 - 12/31/1943 In Retirement
1B CalPERS Target Retirement Date 2005 Fund
01/01/1944 - 12/31/1948
2003 through 2007 (In Retirement)
1C CalPERS Target Retirement Date 2010 Fund 01/01/1949 - 12/31/1953
2008 through 2012 (In or Near Retirement)
1D CalPERS Target Retirement Date 2015 Fund 01/01/1954 - 12/31/1958
2013 through 2017
1E CalPERS Target Retirement Date 2020 Fund 01/01/1959 - 12/31/1963
2018 through 2022
1F CalPERS Target Retirement Date 2025 Fund 01/01/1964 - 12/31/1968
2023 through 2027
1G CalPERS Target Retirement Date 2030 Fund 01/01/1969 - 12/31/1973
2028 through 2032
1H CalPERS Target Retirement Date 2035 Fund 01/01/1974 - 12/31/1978
2033 through 2037
1I CalPERS Target Retirement Date 2040 Fund 01/01/1979 - 12/31/1983
2038 through 2042
1J CalPERS Target Retirement Date 2045 Fund 01/01/1984 - 12/31/1988
2043 through 2047
1K CalPERS Target Retirement Date 2050 Fund 01/01/1989 - 12/31/1993
2048 or later
Risk Based Funds offer varying asset allocations designed to suit three distinct risk profiles. They provide a mix of investments allocated among different investment classes in pre-established proportions suited to specific investor profiles. By self-identifying your risk tolerance, you can invest in the fund that best suits your profile as a conservative, moderate or more aggressive investor.
The Table below shows the Risk Based Funds and associated risk level for each fund.
Fund No. Fund Name Risk Level 8G CalPERS Conservative Asset Allocation Fund Conservative 8H CalPERS Moderate Asset Allocation Fund Moderate 8I CalPERS Aggressive Asset Allocation Fund Aggressive
The Plan also offers a line-up of Core Investment Fund options for complete asset coverage and the opportunity for a well-diversified portfolio. These Core funds span the risk-return spectrum, without duplication, providing you with a clear-cut choice between investments representing different objectives, risk tolerances, and time horizons. These funds may be attractive for those who wish to more actively manage their portfolio.
The Table below shows the Core Investment Funds, including the asset class, category, and risk level for each fund.
Fund No. Fund Name Asset Class Category Risk Level 20 Short-Term Investment Fund Cash Equivalent Short-Term Fixed Income Conservative 47 PIMCO Short-Term Bond Fund Bond Short-Term Bond Conservative 37 CalPERS Total Return Bond Fund Bond Intermediate Bond Moderate 36 CalPERS Treasury Inflation Protected Securities Fund Bond Inflation Protected Bond Moderate 40 CalPERS S&P 500 Equity Index Fund Stock Large Cap Index Aggressive 41 CalPERS Small/Mid Cap Equity Index Fund Stock Small/Mid Cap Index Aggressive 54 The Boston Company Small/Mid Value Fund Stock Small/Mid Cap Value Aggressive 53 The Boston Company Small/Mid Growth Fund Stock Small/Mid Cap Growth Aggressive 42 CalPERS International Index Fund Stock International Equity Index Aggressive 56 Pyramis Select International Fund Stock International Equity Aggressive
California Public Employees Retirement System (CalPERS) CalPERS Supplemental Income 457 Plan (the Plan ) https://calpers.ingplans.com
P.O. Box 5166
Boston, MA 02206-5166
1-800-260-0659
ROLLOVER FORM
REV1012 PR450001ROLL45N Page 3 of 3
CalPERS Supplemental Income 457 Plan
Instructions to Complete the Rollover Process
After receiving the check from your former plan or IRA, send the following to:
CalPERS Supplemental Income 457 Plan P O Box 5166 Boston, MA 02206-5166
1. Completed Rollover Form
2. Rollover check payable to CalPERS Supplemental Income 457 Plan, FBO ( Insert your name )
3. Copy of the distribution request form you filed with your former plan or IRA and a copy of any confirmation you received with the distribution.
4. Please attach a copy of your most recent statement from the resigning trustee.
Fund Fact Sheets
CalPERS Supplemental Income Plans
As of 30, 2008September
CalPERS Supplemental
Income 457 Plan
As of September 30, 2012
CalPERS Target Retirement Date Funds
CalPERS Supplemental Income 457 Plan September 30, 2012
Overview
Target Retirement Date Funds are a series of diversified funds, each
of which has a pre-determined asset mix that will adjust over time
until and often beyond the fund’s “target date” (2005, 2010,
2015...2050). The target date refers to the date the participant will
reach retirement age, assuming a retirement age of 59.
The initial asset allocation is adjusted as a “glidepath,” which
describes the manner in which the fund will slowly be reallocated
over time, across all target retirement dates. This glidepath is
designed to reduce the level of risk as the participant approaches
retirement.
The CalPERS Supplemental Income Plans offer 11 distinct Target
Retirement Date Funds (the “Fund” or “Funds”) as investment
options under the Plans, utilizing the concept of diversification
through asset allocation. You may select the Fund that most closely
matches the year you plan on retiring. The target strategies are a
series of premixed investment options that focus on maturity and
change as you approach retirement.
Objective
The strategic objective of the Funds is to provide a single fund
approach, with an automatically adjusting mix of investments
designed for growth in the early years and gradually becoming more
conservative to protect value as you approach retirement. The
targeted asset mixes are designed to reduce volatility through
diversification. There is no guarantee the Fund will achieve its
investment objectives.
Advantages
Many people don’t have the time, interest or information to choose an
appropriate asset mix for their situation and manage it over time. By
selecting one of the Funds, you receive a portfolio that is diversified
across a range of asset classes and investment styles based on your
time horizon until retirement. The investment mix is adjusted to
become more conservative as you move closer to retirement.
You should carefully consider the investment objective, risks, and
expenses of the Fund before investing. As always, you should
consult with your financial representative to determine whether an
investment fund option is appropriate for you.
Target Retirement Date Funds Glidepath: Asset Allocations and Risk Scale Portfolios automatically adjust to a more conservative investment mix as you approach your target date.
Asset
All
oc
ati
on
(%
)
Higher Risk Moderate Risk Lower Risk
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2050Fund
2045Fund
2040Fund
2035Fund
2030Fund
2025Fund
2020Fund
2015Fund
2010Fund
2005Fund
IncomeFund
Real Estate Investment Trusts (REITs)
Commodities
Emerging Market Equity
Non-U.S. Equity
Small/Mid Cap Equity
Large Cap Equity
U.S. Treasury Inflation Protected Securities (TIPS)
U.S. Fixed Income
CalPERS Supplemental Income 457 Plan — CalPERS Target Retirement Date Funds
Target Retirement Date Funds Customized Strategy
The Funds are actively managed and CalPERS uses a customized
strategy to best optimize the fund’s potential. Included in many of the
funds are Commodities, Real Estate Investment Trusts (REITs) and
Treasury Inflation Protected Securities (TIPS), adding a layer of
sophisticated diversification and professional asset allocation
oversight. CalPERS utilizes member information in developing the
Funds to achieve a higher rate of total return within prudent levels of
risk and liquidity. A blend of active and passive underlying
investments allows the Plan to offer a well diversified portfolio at low
cost. The performance of the Fund is measured against a
customized benchmark.
Fund Benchmarks
The benchmark for each Fund is a composite of asset class
benchmarks that are weighted according to each Fund’s policy target
weights. The asset class benchmarks are Russell 3000 Equity Index,
FTSE Developed World ex US Index, FTSE Emerging Markets,
Barclays Capital Aggregate Bond Index, Barclays Capital US TIPS
Index, BofA Merrill Lynch 6-month T-Bill. S&P GSCI Commodities
Index and FTSE EPRA/NAREIT Global REITs Index.
Fund Allocation and Performance Income Fund
Designed for an investor who has retired or has a very low risk tolerance. It is made up of
primarily fixed income with a small percentage of stocks to allow the opportunity for additional
growth potential.
2005 Fund
Designed for an investor who retired by 2009. The Fund’s asset allocation will become more
conservative over time. It should provide capital appreciation and current income consistent
with its current allocation.
2010 Fund
Designed for an investor retiring between 2009 and 2012, with a mix of stock, bond and fixed
income funds that seeks a more stable rate of growth than that of a broad investment in the
stock market.
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 3.05% 7.07% 11.17% 6.53% -- -- 8.75% 12/01/08
Fund Performance — Gross 3.22% 7.47% 11.76% 7.11% -- -- 9.37%
Benchmark Performance 3.02% 6.92% 11.32% 7.75% 4.60% 6.58% 9.98%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 3.36% 7.73% 12.47% 6.82% -- -- 9.74% 12/01/08
Fund Performance — Gross 3.53% 8.19% 13.13% 7.44% -- -- 10.40%
Benchmark Performance 3.39% 7.74% 12.84% 8.19% 3.56% 7.15% 11.11%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 3.76% 8.77% 14.35% 7.28% -- -- 10.44% 12/01/08
Fund Performance — Gross 3.93% 9.17% 14.96% 7.88% -- -- 11.08%
Benchmark Performance 3.88% 8.97% 14.96% 8.68% 3.28% 7.44% 11.78%
Large Cap Equity20%
Small/Mid Cap Equity
4%
Non-U.S. Equity 6%
U.S. Fixed Income
53%
TIPS15%
Commodities2%
Large Cap Equity24%
Small/Mid Cap Equity
5%
Non-U.S. Equity 8%
U.S. Fixed Income
45%
TIPS16%
Commodities2%
Large Cap Equity 28%
Small/Mid Cap Equity
6%
Non-U.S. Equity 10%
U.S. Fixed Income
37%
TIPS15%
Commodities2%
REITs2%
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
CalPERS Supplemental Income 457 Plan — CalPERS Target Retirement Date Funds
Fund Allocation and Performance 2015 Fund
Designed for an investor retiring between 2013 and 2017. The Fund has a reasonable level of
income and long-term growth of capital and income. It has a broadly diversified holding of
stocks and bonds that will gradually become more conservative in its allocation as the investor
approaches retirement.
2020 Fund
Designed for an investor retiring between 2018 and 2022 seeking diversified investment with
an asset allocation mix that becomes more conservative over time and combines the potential
for long-term capital growth with income.
2025 Fund
Designed for an investor retiring between 2023 and 2027 seeking both a reasonable level of
income and long-term growth of capital and income. The Fund becomes more conservative
over time.
2030 Fund
Designed for an investor retiring between 2028 and 2032 seeking a diversified investment with
an asset allocation mix with the potential for long-term capital growth and income. The Fund
gradually becomes more conservative over time.
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 4.17% 9.46% 15.78% 7.59% -- -- 11.21% 12/01/08
Fund Performance — Gross 4.35% 9.88% 16.41% 8.22% -- -- 11.88%
Benchmark Performance 4.37% 9.85% 16.56% 9.01% 2.80% 7.86% 12.44%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 4.61% 10.05% 17.03% 7.73% -- -- 11.87% 12/01/08
Fund Performance — Gross 4.78% 10.57% 17.78% 8.40% -- -- 12.60%
Benchmark Performance 4.84% 10.51% 17.85% 9.11% 1.84% 8.23% 13.02%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 5.13% 10.88% 18.91% 8.00% -- -- 12.41% 12/01/08
Fund Performance — Gross 5.30% 11.41% 19.68% 8.67% -- -- 13.10%
Benchmark Performance 5.50% 11.63% 19.90% 9.38% 1.12% 8.48% 13.53%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 5.52% 11.70% 20.70% 8.34% -- -- 13.39% 12/01/08
Fund Performance — Gross 5.69% 12.24% 21.47% 9.01% -- -- 14.08%
Benchmark Performance 5.98% 12.64% 21.74% 9.74% 0.47% 8.93% 14.43% Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Large Cap Equity 30%
Small/Mid Cap Equity
8%
Non-U.S. Equity 11%
Emerging Equity 1%
U.S. Fixed Income
33%
TIPS11%
Commodities3%
REITs3%
Large Cap Equity 33%
Small/Mid Cap Equity
9%
Non-U.S. Equity 13%
Emerging Equity 2%
U.S. Fixed Income 30%
TIPS6%
Commodities4%
REITs3%
Large Cap Equity 34%
Small/Mid Cap Equity
13%
Non-U.S. Equity 16%
Emerging Equity 3%
U.S. Fixed Income 23%
TIPS2%
Commodities5%
REITs4%
Large Cap Equity 36%
Small/Mid Cap Equity
16%
Non-U.S. Equity 18%
Emerging Equity 4%
U.S. Fixed Income 16%
Commodities5%
REITs5%
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
CalPERS Supplemental Income 457 Plan — CalPERS Target Retirement Date Funds
Fund Allocation and Performance 2035 Fund
Designed for an investor retiring between 2033 and 2037 seeking a diversified investment with
an asset allocation mix with the potential for long-term capital growth and income. It
corresponds to a volatile price fluctuation. The Fund gradually becomes more conservative
over time.
2040 Fund
Designed for an investor retiring between 2038 and 2042 seeking a diversified investment with
an asset allocation mix with the potential for long-term capital growth and income. It
corresponds to a volatile price fluctuation. The Fund gradually becomes more conservative
over time.
2045 Fund
Designed for an investor retiring between 2043 and 2047 seeking a diversified investment with
an asset allocation mix with the potential for long-term capital growth and income. It
corresponds to a volatile price fluctuation. The Fund gradually becomes more conservative
over time.
2050 Fund
Designed for an investor retiring after 2048 seeking a diversified investment with an asset
allocation mix with the potential for long-term capital growth and income. It corresponds to a
volatile price fluctuation. The Fund gradually becomes more conservative over time.
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 5.89% 12.36% 22.12% 8.55% -- -- 13.92% 12/01/08
Fund Performance — Gross 6.06% 12.90% 22.91% 9.21% -- -- 14.66%
Benchmark Performance 6.44% 13.57% 23.47% 10.05% 0.10% 9.30% 15.14%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 6.03% 12.55% 22.57% 8.58% -- -- 14.04% 12/01/08
Fund Performance — Gross 6.20% 13.09% 23.35% 9.26% -- -- 14.75%
Benchmark Performance 6.61% 13.82% 23.92% 10.09% 0.12% 9.31% 15.16%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 6.03% 12.55% 22.57% 8.59% -- -- 13.91% 12/01/08
Fund Performance — Gross 6.20% 12.98% 23.24% 9.25% -- -- 14.59%
Benchmark Performance 6.61% 13.82% 23.92% 10.09% 0.12% 9.31% 15.16%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 6.03% 12.56% 22.57% 8.57% -- -- 14.19% 12/01/08
Fund Performance — Gross 6.20% 12.98% 23.23% 9.22% -- -- 14.88%
Benchmark Performance 6.61% 13.82% 23.92% 10.09% 0.12% 9.31% 15.16%
Large Cap Equity 40%
Small/Mid Cap Equity
17%Non-U.S.
Equity 19%
Emerging Equity 6%
U.S. Fixed Income 8%
Commodities5%
REITs5%
Large Cap Equity 40%
Small/Mid Cap Equity
18%
Non-U.S. Equity 20%
Emerging Equity 7%
U.S. Fixed Income 5%
Commodities5%
REITs5%
Large Cap Equity 40%
Small/Mid Cap Equity
18%
Non-U.S. Equity 20%
Emerging Equity 7%
U.S. Fixed Income 5%
Commodities5%
REITs5%
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Large Cap Equity 40%
Small/Mid Cap Equity
18%
Non-U.S. Equity 20%
Emerging Equity 7%
U.S. Fixed Income 5%
Commodities5%
REITs5%
Lower Risk Moderate Risk Higher Risk
CalPERS Supplemental Income 457 Plan — CalPERS Target Retirement Date Funds
Asset Class and Strategy of the Underlying Portfolios
Additional Disclosures Fees
The annual asset management and administration fee of the Funds
is 0.64%. Fees are netted out of the Funds’ performance daily. The
CalPERS Board of Administration annually reviews the fees and
operating expenses, and changes may be made if appropriate.
Fund Performance
Performance data shown represents post performance and is no
guarantee of future results. The investment return and principal value
of an investment will fluctuate so that an investor’s units, when
redeemed, may be worth more or less than their original cost.
Current performance may be lower or higher than the performance
data shown. For current performance information, including
performance to the most recent month-end, please visit the Plan
Web site at 0Hhttps://calpers.ingplans.com.
Price
The unit value of the Funds change daily, based upon the market value
of the underlying securities. Just as prices in individual securities
fluctuate, the Funds’ unit value changes with market conditions.
Portfolio Manager Information
The Funds are actively managed by CalPERS Investment Staff and
external managers. They are responsible for all aspects of portfolio
management and will manage to the objectives of each fund, as well
as monitor and evaluate performances. Since the inception of the
Public Employees’ Retirement Fund in the 1930s, investments by
CalPERS have provided income (in the form of interest, dividends
and capital gains) to meet the retirement and health needs of its
members. The Funds have been offered under the Supplemental
Income Plans since November 2008.
What You Own
You own units of the Funds’ portfolio that invest in stocks and bonds.
You do not have direct ownership of the securities in the portfolio.
A Note About the Funds’ Risk
Investing in the Funds involves a number of investment risks, and it
is possible to lose money while investing in the Funds. The Funds
are subject to certain risks depending upon the type of securities held
by the Funds and the management style of the Funds. Each Fund
has its own level of risk. Please refer to the Risk Scale on page 1.
Stocks or bonds — each of these investments performs very
differently. Stocks may go up and down more dramatically than
bonds. When these investments go down you lose money, when they
go up you gain money. This is what is meant when investors talk
about risk. Since stocks may go up and down more than bonds,
stocks are a riskier investment. It is important to understand the
relationship between risk and reward. Over the long term, riskier
investments have historically earned more than less risky
investments — stocks more than bonds. The key to successful
investing is to understand the relationship between risk and reward
and select a portfolio that does not fluctuate more than your comfort
level, but provides enough opportunity for reward.
Information Accessibility
Since the Funds are not mutual funds, information is not available
from a newspaper source. The record keeper will provide you access
to your account information online by visiting the Plan Web site at
https://calpers.ingplans.com and/or by calling the Plan Information
line at (800) 260-0659.
Expenses
Expenses are an important aspect of investing. To pay for the
administration and management of a fund, each investor is charged a
fee, which is calculated as a percentage of the amount the investor
has in the fund. Even if the fund loses money during a period, the fee
is still charged. Although an annual expense fee may seem relatively
small, its effect on performance over time may be substantial. Fees
and expenses are only one of several factors that participants should
consider when making investment decisions.
Prospectus Information
The Funds consist of assets managed by CalPERS in a separate
account specifically for CalPERS Plans. Because it is not a mutual
fund, a prospectus is not available. This summary is designed to
provide descriptive information. Please read carefully before you
invest. For more detailed information about the Funds, you may
contact CalPERS at (800) 696-3907.
Asset Class / Strategy Underlying Portfolio
Large Cap US Equity
Large Cap US Equity Value AllianceBernstein Large Cap Value
Large Cap US Equity Growth Turner Investment Partners Large Cap Growth
Passive Large Cap US Equity CalPERS S&P 500 Index
SMID Cap US Equity
Small-Mid Cap US Equity Growth
The Boston Company SMID Cap Growth
Small-Mid Cap US Value The Boston Company SMID Cap Value
Non-US Equity
Active Non-US Equity Growth Pyramis Select International Equity
Passive Non-US Value CalPERS International Index
Emerging Equity Emerging Market Equity CalPERS Emerging Equity Index
US Fixed Income
US Short Fixed Income PIMCO Short-Term Bond
US Core Fixed Income CalPERS Total Return Bond
TIPS
TIPS CalPERS TIPS
Commodities
Commodities CalPERS Commodities
REITs
Global REITs CalPERS Global REITs
CalPERS Risk-Based Asset Allocation Funds
CalPERS Supplemental Income 457 Plan September 30, 2012
Overview
Risk-Based Asset Allocation Funds are a series of diversified funds,
each of which has a pre-determined asset mix that will not vary over
time, and is designed to reflect a personal investment strategy. This
asset allocation is designed to reduce the level of risk by
diversification.
CalPERS Supplemental Income Plan offers three distinct investment
options utilizing the concept of diversification through asset allocation
so you may select the fund that closely matches your risk tolerance.
Think of risk-based strategies as a premixed investment option that
focuses on a diversified portfolio that is periodically rebalanced by
CalPERS professionals.
Objective
The strategic objective of the CalPERS Risk-Based Asset Allocation
Funds is to provide a single fund solution, based on targeted asset
mixes that offer diversification to provide asset growth with a level of
volatility that is appropriate to the risk tolerance of the investor. There
is no guarantee the Funds will achieve their investment objective.
Advantages
Many people don’t have the time, interest or information to choose
the right asset mix for their situation and manage it over time. With
Risk-Based Asset Allocation Funds you receive a Fund that is well
diversified across a range of asset classes and investment styles
based on your personal investment risk tolerance. The investment
mix is static, and each fund includes an allocation appropriate for
aggressive, moderate or conservative style of investing.
You should carefully consider the investment objective, risks, and
expenses of the Fund before investing. As always, you should
consult with your financial representative to determine whether an
investment fund option is appropriate for you.
Asset Class, Strategy and Allocation to the Underlying Portfolio
Asset Class / Strategy Underlying Portfolio Underlying Portfolio Allocation
Conservative Moderate Aggressive
Large Cap US Equity 20% 33% 40%
Large Cap US Equity Value AllianceBemstein Large Cap Value Large Cap US Equity Growth Turner Investment Partners Large Cap Growth Passive Large Cap US Equity CalPERS S&P 500 Index
SMID Cap US Equity 4% 10% 18%
Small-Mid Cap US Equity Growth The Boston Company SMID Cap Growth Fund Small-Mid Cap US Value The Boston Company SMID Cap Value Fund
Non-US Equity 6% 15% 20%
Active Non-US Equity Growth Pyramis Select International Equity Passive Non-US Value CalPERS International Index
Emerging Equity 2% 7%
Emerging Market Equity CalPERS Emerging Equity Index
US Fixed Income 53% 28% 5%
US Short Fixed Income PIMCO Short-Term Bond US Core Fixed Income CalPERS Total Return Bond
TIPS 15% 5%
TIPS CalPERS TIPS
Commodities 2% 4% 5%
Commodities CalPERS Commodities
REITs 3% 5%
Global REITs CalPERS Global REITs
CalPERS Supplemental Income 457 Plan — CalPERS Risk-Based Asset Allocation Funds
CalPERS Customized Strategy
The Funds are actively managed and CalPERS uses a customized
strategy to best optimize the funds’ potential. Included in many of the
funds are Commodities, Real Estate Investment Trusts (REITs) and
Treasury Inflation Protected Securities (TIPS), adding a layer of
sophisticated diversification and professional asset allocation
oversight. CalPERS utilizes member information in developing the
Funds to achieve a higher rate of total return within prudent levels of
risk and liquidity. A blend of active and passive underlying
investments allows the Plan to offer a well diversified portfolio at low
cost. The performance of the Funds is measured against a
customized benchmark.
Fund Benchmarks
The benchmark for each Fund is a composite of asset class
benchmarks that are weighted according to each Fund’s policy target
weights. The asset class benchmarks are Russell 3000 Equity Index,
FTSE Developed World ex-US Index, FTSE Emerging Markets,
Barclays Capital Aggregate Bond Index, Barclays Capital US TIPS
Index, BofA Merrill Lynch 6-month T-Bill, S&P GSCI Commodities
Index and FTSE EPRA/NAREIT Global REITs Index.
Fund Allocation and Performance Conservative Asset Allocation Fund
Designed for an investor with a conservative tolerance for risk and/or short time horizon. The
Fund seeks a combination of current income and capital appreciation, with a greater emphasis
on income.
Moderate Asset Allocation Fund
Designed for an investor with a moderate tolerance for risk and/or medium time horizon. The
Fund seeks a combination of current income and capital appreciation, with a greater emphasis
on appreciation.
Aggressive Asset Allocation Fund
Designed for an investor with an aggressive tolerance for risk and/or long time horizon. The
Fund seeks a combination of current income and capital appreciation, with a greater emphasis
on growth. It corresponds to an aggressive price fluctuation.
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 3.05% 7.08% 11.18% 6.52% -- -- 8.76% 12/01/08
Fund Performance — Gross 3.22% 7.59% 11.89% 7.17% -- -- 9.40%
Benchmark Performance 3.02% 6.92% 11.32% 7.75% 4.60% 6.58% 9.98%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 4.77% 10.33% 17.58% 7.87% -- -- 11.73% 12/01/08
Fund Performance — Gross 4.94% 10.76% 18.22% 8.48% -- -- 12.37%
Benchmark Performance 5.03% 10.83% 18.38% 9.23% 2.27% 8.09% 12.84%
Returns Quarter Year to Date
1 Yr 3 Yrs 5 Yrs 10 Yrs Fund ITD (Inception to Date)
Inception Date
Fund Performance — Net 6.02% 12.55% 22.57% 8.59% -- -- 14.13% 12/01/08
Fund Performance — Gross 6.20% 13.09% 23.36% 9.27% -- -- 14.84%
Benchmark Performance 6.61% 13.82% 23.92% 10.09% 0.12% 9.31% 15.16% Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Lower Risk Moderate Risk Higher Risk
Large Cap Equity33%
Small/Mid Cap Equity
10%
Non-U.S. Equity 15%
Emerging Equity 2%
U.S. Fixed Income
28%
TIPS5%
Commodities4%
REITs3%
Large Cap Equity20%
Small/Mid Cap Equity
4%
Non-U.S. Equity 6%
U.S. Fixed Income
53%
TIPS15%
Commodities2%
Large Cap Equity 40%
Small/Mid Cap Equity
18%
Non-U.S. Equity 20%
Emerging Equity 7%
U.S. Fixed Income 5%
Commodities5%
REITs5%
CalPERS Supplemental Income 457 Plan — CalPERS Risk-Based Asset Allocation Funds
Additional Disclosures Fees
The annual asset management and total expenses of the Risk-Based
Asset Allocation Funds is 0.64%. Fees are netted out of the Funds’
performance daily. The CalPERS Board of Administration reviews
the fees and operating expenses annually, and changes may be
made if appropriate.
Fund Performance
Performance data shown represents past performance and is no
guarantee of future results. The investment return and principle value
of an investment will fluctuate so that an investor’s units, when
redeemed, may be worth more or less than their original cost.
Current performance may be lower or higher than the performance
data shown. For current performance information, including
performance to the most recent month-end, please visit the Plan
Web site at https://calpers.ingplans.com.
Price
The unit value of the Funds change daily, based upon the market
value of the underlying securities. Just as prices in individual
securities fluctuate, the Funds’ unit value changes with market
conditions.
Portfolio Manager Information
The Funds are actively managed by CalPERS Investment Staff and
External Managers. They are responsible for all aspects of portfolio
management and will manage to the objectives of each fund as well
as monitor and evaluate performances. Since the inception of the
Public Employees’ Retirement Fund in the 1930s, CalPERS
investments have provided income (in the form of interest, dividends
and capital gains) to meet the retirement and health needs of its
members. The Funds are offered under the CalPERS Supplemental
Income Plan as of November 2008.
What You Own
You own units of the Funds’ portfolio that invests in stocks and bonds.
You do not have direct ownership of the securities in the portfolio.
A Note about the Funds’ Risk
Investing in the Funds involves a number of investment risks, and it
is possible to lose money while investing in the Funds. The Funds
are subject to certain risks depending upon the type of securities held
by the Funds and the management style of the Funds. Each Fund
has its own level of risk. Please refer to the Risk Scale on page 1.
Stocks or bonds — each of these investments perform very
differently. Stocks may go up and down more dramatically than
bonds. When these investments go down you lose money, when they
go up you gain money. This is what is meant when investors talk
about risk. Since stocks may go up and down more than bonds,
stocks are a riskier investment. It is important to understand the
relationship between risk and reward. Over the long term, riskier
investments have historically earned more than less risky
investments — stocks more than bonds. The key to successful
investing is to understand the relationship between risk and reward
and select a portfolio that does not fluctuate more than your comfort
level, but provides enough opportunity for reward.
Information Accessibility
Since the Funds are not mutual funds, information is not available
from a newspaper source. The recordkeeper will provide you access
to your account information online by visiting the Plan Web site at
https://calpers.ingplans.com and/or by calling the Plan Information
Line at (800) 260-0659.
Expenses
Expenses are an important aspect of investing. To pay for the
administration and management of a fund, each investor is charged a
fee, which is calculated as a percentage of the amount the investor
has in the fund. Even if the fund loses money during a period, the fee
is still charged. Although an annual expense fee may seem relatively
small, its effect on performance over time may be substantial. Fees
and expenses are only one of several factors that participants should
consider when making investment decisions.
Prospectus Information
The CalPERS Risk-Based Asset Allocation Funds consist of assets
managed by CalPERS in a separate account, specifically for the
CalPERS Plans. Because it is not a mutual fund, a prospectus is not
available. This summary is designed to provide descriptive
information.
Please read carefully before you invest. For more detailed
information about the Funds, you may contact CalPERS at
(800) 696-3907.
Short-Term Investment Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Objective
The Short-Term Investment Fund (the “Fund”) seeks to preserve
principal, provide a high level of liquidity, and provide a competitive
yield by investing in high quality short-term instruments. The Fund is
not a “money market fund” registered with the Securities and
Exchange Commission, and is not subject to the various rules and
limitations that apply to such funds. Although the Fund may seek to
maintain a stable unit value, there is no guarantee the Fund will
achieve its objectives.
Strategy
Through active management, the Fund seeks to achieve its
objectives by investing, under normal circumstances, most of its
assets in U.S. government securities, repurchase agreements, and
in money market mutual funds subject to SEC Rule 2a-7. The
weighted average maturity will not normally exceed 60 days and the
maximum expected average time to receipt of principal of any single
security purchased by the Fund under this strategy will not normally
exceed 397 days.
Benchmark
The performance of the Fund is measured against the Merrill Lynch
3-Month U.S Treasury Bill Index, which is an unmanaged index that
measures returns of three-month U.S Treasury Bills. Prior to 2010,
the Portfolio Composite used the Merrill Lynch 3-Month U.S. T-Bill
Auction Average as the benchmark.
Consider Investing If:
You are an investor who is interested in preserving your principal
through an investment that minimizes volatility and offers a
conservative rate of return. Notwithstanding, it is possible to lose
money when investing in the Fund. In building a retirement portfolio,
it is important to include a mix of equity (stock) and fixed income
(bond) funds. Equity funds help build the value of your portfolio
over the long term, while fixed income funds are intended to provide
income and stability of principal. You should carefully consider the
investment objective, risks, and expenses of the Fund before
investing. As always, you should consult with your financial
representative to determine whether or not an investment fund
option is appropriate for you.
Fees
The annual asset management and administrative fee of the Fund is
0.50%. Fees are netted out of the Fund’s performance daily. The
CalPERS Board of Administration annually review the fees and
operating expenses, and changes may be made if appropriate.
What You Own You own units of the Fund’s portfolio. You do not have direct
ownership of the securities in the portfolio. An investment in the
Fund is not a bank deposit, and it is not insured Nor guaranteed by
the Federal Deposit Insurance Corporation (FDIC).
Performance Returns
2.43% 3.30% 3.12%
Performance as of September 30, 2012
Past performance does not indicate future results
Portfolio Net Returns
Portfolio Composite
Gross Returns
Benchmark (Merrill Lynch 3-mo T-Bill)
3 Months -0.09% 0.04% 0.03%
1 Year -0.41% 0.10% 0.07%
3 Years -- 0.14% 0.11%
5 Years -- 0.83% 0.58%
10 Years -- 1.96% 1.78%
Since Inception Date (9/01/10)
-0.28% -- --
Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com.
Short-Term Investment Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Portfolio Manager Information The Fund is managed by State Street Global Advisors (SSgA),
global leaders in providing investment management services to
clients worldwide.
Price
The unit value of the Fund changes daily, based upon the market
value of the underlying securities. Just as prices of individual
securities fluctuate, the Fund’s unit value changes with market
conditions.
Information Accessibility
Since the Fund is not a mutual fund, information is not available from
a newspaper source. The Supplemental Income Plans (SIP) record
keeper will provide you access to your account information online by
visiting our website at https://calpers.ingplans.com and/or by calling
a plan participant service representative toll-free at (800) 260-0659.
Expenses
Expenses are an important aspect of investing. To pay for the
administration and management of the Fund, each investor is
charged a fee, which is calculated as a percentage of the amount
the investor has in the fund. Even if the Fund loses money during a
period, the fee is still charged. Although an annual fee may seem
relatively small, its effect on performance over time may be
substantial. However, fees and expenses are only one of the
several factors that participant should consider when making
investment decisions.
Frequent Trading Policy
CalPERS enforces a frequent trading policy to secure the investment
performance of the Supplemental Income Plan funds for the benefit
of all participants investing in the funds. As the funds are designed
to achieve participants’ long-term retirement income goals, short-
term trading will be limited. Multiple round trip trades into and out of
a fund may be subject to these restrictions. For more information on
the Supplemental Income Plans’ Excessive Short-term Trading
restrictions, please see the Supplemental Income Plans Policy at:
http://www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml.
Prospectus Information
The Fund consists of assets managed in a commingled account.
Because it is not a mutual fund, a prospectus is not available. This
summary is designed to provide descriptive information. Please
read it carefully before you invest. For more detailed information
about the Fund, you may contact CalPERS at (800) 696-3907.
Characteristics Current 1 Day Average Yield 0.16%
Average Credit Quality A1+P1
Weighted Average Maturity 40 days
Risk Level
Low Medium High
A Note About the Fund’s Risk
The Fund’s risk profile is extremely conservative due to the high
credit quality and the very short maturities of its investments.
Notwithstanding, investing in this Fund still involves a number of
risks and it is possible to lose money while investing in this Fund.
The Fund’s return is generated from the income earned on each of
the Fund’s investments. There are risks involved with investing,
including possible loss of principal. The Fund seeks to maintain a
stable unit value, although there is no assurance that a stable unit
value will be maintained. Risks associated with fixed income
securities include, but are not limited to, interest rate risk and credit
risk. In general, interest rate risk involves the risk that when interest
rates decline, the market value of fixed income securities tends to
increase. Conversely, when interest rates increase, the market
value of fixed income securities tends to decline. Credit risk involves
the risk that the issuer could default on its obligations, and the Fund
will not recover its investment. The Fund has strict management
standards in order to minimize this risk.
Interest Rate Changes
Debt and money market securities have varying levels of sensitivity
to changes in interest rates. In general, the price of a debt or money
market security may fall when interest rates rise and may rise when
interest rates fall. Securities with longer maturities may be more
sensitive to interest rate changes.
Sector Allocation as of September 30, 2012
U.S. Agency 51.43%
Repurchase Agreements 43.09%
U.S. Treasury 5.48%
This portfolio offers investors a strategy that seeks to outperform money markets on a consistent basis while still providing liquidity and principal stability. Potential benefits of this portfolio include:
Actively managed across the global fixed income market in an effort to enhance returns over money markets (e.g. CDs, money market funds, short-term investment funds, etc.)
May provide a source of income for cash investors Prudently manage risk through diversified exposure to a broad opportunity set of short duration
securities
PIMCO Short-Term Bond Fund CalPERS 457 Plan
PORTFOLIO STATISTICS
As of September 30, 2012
PORTFOLIO DESCRIPTION The Short-Term portfolio is an alternative approach for money market investors who seek enhanced returns, principal stability and daily liquidity. The portfolio is an actively managed enhanced cash strategy that invests in high quality money market instruments and short-term fixed income securities.
INVESTOR BENEFITS
PORTFOLIO ADVANTAGE The portfolio seeks to deliver consistent excess returns over money markets while protecting against downside risk. This diversified approach to enhancing returns over cash and money market strategies by expanding the fixed-income opportunity set beyond money markets may provide greater potential for consistent outperformance over the long term.
SECTOR DIVERSIFICATION (%)
Portfolio Assets Inception Date
PORTFOLIO MANAGER
Jerome Schneider
Yield to Maturity 0.92Average Quality AA-Effective Duration (yrs) 0.92Effective Maturity (yrs) 1.02
09/01/2010$73,003,320
Gov't Related 18%Mortgage 16%Invest. Grade Credit 47%Other 17%Net Cash Equivalents 2%
Note: The PIMCO Short-Term Bond Fund is not a mutual fund as defined by the Investment Company Act of 1940, but is a separate portfolio that is managed by Pacific Investment Management Company on behalf of the CalPERS 457 Plan.
VALUE OF CORE STRATEGIES An allocation to fixed-income strategies may be beneficial as a core part of a balanced portfolio. Bonds can provide a steady source of income and, as part of a total-return strategy, potentially produce capital gains as well. An allocation to a fixed-income strategy in a portfolio also can offer diversification and serve as a hedge against volatility and risks in other asset classes, particularly in times of economic uncertainty or deflation. Long-duration bonds can be used to diversify a broader core allocation to fixed income and help an overall portfolio’s match to longer-term liabilities.
Market Value Weighted
Past performance is no guarantee of future results. Performance figures are presented after management fees, commissions, other expenses, and the deduction of actual investment advisory fees; but do not reflect the deduction of custodial fees, if any. The "after fees" performance figures above also reflect the reinvestment of earnings. All periods longer than one year are annualized.
Effective duration is the duration for a bond with an embedded option when the value is calculated to include the expected change in cash flow caused by the option as interest rates change. Gov't Related may include nominal and inflation-protected Treasuries, agencies, interest rate swaps, Treasury futures and options, and FDIC-guaranteed corporate securities. The credit quality of a particular security or group of securities does not ensure the stability or safety of the overall portfolio.
PIMCO calculates a portfolio's Estimated Yield to Maturity by averaging the yield to maturity of each security held in the portfolio on a market weighted basis. PIMCO pulls each security's yield to maturity from PIMCO's Portfolio Analytics database. When not available in the PIMCO's Portfolio Analytics database, PIMCO pulls the security's yield to maturity from Bloomberg. When not available in either database, PIMCO will assign a yield to maturity for that security from a PIMCO matrix based on prior data.
Investing in the bond market is subject to certain risks including market, interest-rate, issuer, credit, and inflation risk; investments may be worth more or less than the original cost when redeemed. Mortgage and asset-backed securities may be sensitive to changes in interest rates, subject to early repayment risk, and their value may fluctuate in response to the market’s perception of issuer creditworthiness; while generally supported by some form of government or private guarantee there is no assurance that private guarantors will meet their obligations. Derivatives may involve certain costs and risks such as liquidity, interest rate, market, credit, management and the risk that a position could not be closed when most advantageous. Investing in derivatives could lose more than the amount invested. Diversification does not ensure against loss.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written permission. © PIMCO 2010. Pacific Investment Management Company LLC, 840 Newport Center Drive, Newport Beach, CA 92660
This report was created for CalPERS.
BASIC FACTS PERFORMANCE
PIMCO, founded in 1971, is a global investment solutions provider managing retirement and other assets for more than 8 million people in the U.S. and millions more around the world. Our clients include state, local and union pension and retirement plans whose beneficiaries come from all walks of life, including educators, healthcare workers and public safety employees. We also serve individual investors, working in partnership with financial intermediaries such as Registered Investment Advisors, broker/dealers, trust banks and insurance companies. We are advisors and asset managers to central banks, corporations, universities, foundations and endowments. PIMCO has offices in North America, Europe, Asia and Australia and is owned by Allianz Global Investors, a subsidiary of the Munich-based Allianz Group, a leading global insurance company.
ABOUT PIMCO
ABOUT THE BENCHMARK
Merrill Lynch 6-Month Treasury Bill Index is an unmanaged index representing monthly return equivalents of yield averages of the last 6 month Treasury Bill issues. It is not possible to invest directly in an unmanaged index.
Total Annual Operating Expenses 0.55% Inception 5 Yrs. 3 Yrs. 1 Yr. 3 Mos.
Before Fees (%) 1.37 -- -- 2.36 0.74After Fees (%) 0.85 -- -- 1.80 0.60
Benchmark (%) 0.24 2.62 0.97 0.15 0.06
Performance data current to the most recent month-end is available at https://calpers.ingplans.com or by calling (800) 260-0659.
CalPERS Total Return Bond Fund
SUPPLEMENTAL INCOME PLAN
SEPTEMBER 30, 2012
Objective
The strategic objective of the CalPERS Total Return Bond
Fund (the Fund) is to seek the highest total rate of return,
consisting of income and capital appreciation, consistent with
liquidity requirements and prudent investment management,
and to outperform the designated benchmark, the Barclays
Capital U.S. Aggregate Index. All sectors of the bond
markets are utilized in an effort to add value while
maintaining an overall risk level similar to the benchmark.
There is no guarantee the Fund will achieve its investment
objectives.
Strategy
The Fund is actively managed by CalPERS and is designed
to identify opportunities across U.S. bond market sectors and
invest where risks are both understood and manageable.
The fund invests primarily in U.S. dollar-denominated fixed
income securities and other debt instruments of domestic and
foreign entities, including corporate bonds, foreign
government bonds issued in U.S. dollars, U.S. government
issued bonds, asset-backed, and mortgage-backed.
Securities and sectors may receive a greater allocation than
the benchmark should they have higher expected returns.
The average duration of the Fund is expected to remain
within 4 to 5 years. (See Additional Disclosures to learn
more about the Fund’s benchmark.)
Consider Investing if:
You are a long-term investor who is interested in investing in
the U.S. bond market and is moderately conservative or
seeking long-term growth through capital appreciation. You
should carefully consider the investment objective, risks and
expenses of the Fund before investing. As always, you
should consult with your financial representative to determine
whether an investment fund option is appropriate for you.
Portfolio Manager Information
Since the inception of the Public Employees’ Retirement
Fund in the 1930s, investments by CalPERS have provided
income (in the form of interest, dividends, and capital gains)
to meet the retirement and health needs of its members. The
Fund has been managed internally by CalPERS Investment
Office staff for the CalPERS Supplemental Income Plans
(SIP) since June 2007.
Fees
The annual asset management and administrative fee of the
CalPERS Total Bond Fund is 0.55%. Fees are netted out of
the Fund’s performance daily. At least annually, the
CalPERS Board of Administration reviews the fees and
operation expenses, and changes may be made if
appropriate.
What You Own
You own units of the Fund’s portfolio that invests in bonds
issued by corporations and government entities. You do not
have direct ownership of the securities in the portfolio.
Composition as of September 30, 2012
Credit (Primarily Corporates) 27.9%
Government (Treasuries and Agencies) 33.6%
Securitized (Primarily Mortgage-backed and Asset-backed)
33.9%
Cash 4.6%
Performance as of September 30, 2012
Past performance does not indicate
future results.
Portfolio Net Return
Portfolio Gross Return
Benchmark Barclays Capital
Aggregate Bond Index
3 Months 2.02% 2.16% 1.58%
1 Year 6.18% 6.74% 5.16%
3 Years 6.38% 6.93% 6.19%
5 Years 5.97% 6.52% 6.53%
Since Inception Date (6/1/2007)
6.03% 6.59% 6.61%
* Fees of 0.55% have been deducted for investment management and administrative expenses. Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown above. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com
CalPERS Total Return Bond Fund
SUPPLEMENTAL INCOME PLAN
SEPTEMBER 30, 2012
Risk
The Fund is subject to certain risks depending upon the type
of securities held by the Fund and the management style of
the Fund. (See Additional Disclosure to learn more about
the Fund’s risk.)
Price
The unit value of the Fund changes daily, based upon the
market value of the underlying debt instruments. Just as
prices in individual securities fluctuate, the Fund’s unit value
changes with market conditions.
Information Accessibility
Since the Fund is not a mutual fund, information is not
available from a newspaper source. The SIP record keeper
will provide you access to your account information online by
our website at https://calpers.ingplans.com and/or by calling
the Plan Information Line at (800) 260-0659.
Prospectus Information
The Fund consists of assets managed by CalPERS,
specifically for CalPERS Plans. Because it is not a mutual
fund, a prospectus is not available. This summary is
designed to provide descriptive information. Please read
carefully before you invest. For more detailed information
about the Fund, you may contact CalPERS at (800) 696-
3907.
Fund Statistics
Expense Ratio: 0.55%
As of September 30, 2012, the total assets under
management are $238,137,244.
Asset Class: Intermediate Term Bond
About the Fund’s Benchmark
The Barclays Capital U.S. Aggregate Index invests in mainly
government, mortgage-backed and investment-grade
corporate debt securities with a maximum of up to 25% in
non-investment grade corporate debt securities. You may not
invest directly in this index.
Additional Disclosures
Frequent Trading Policy
CalPERS has a new frequent trading policy to secure the
investment performance of the Supplemental Income 457
Plan funds for the benefit of all investing in the funds. As the
funds are designed to achieve participants’ long-term
retirement income goals, short-term trading will be limited.
Multiple round trip trades into and out of a fund may be
subject to these restrictions. For more information on the
Supplemental Income Plans’ Excessive Short-term Trading
restrictions, please see the Supplemental Income Plans
Policy at:
www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml
Expenses
Expenses are an important aspect of investing. To pay for
the administration and management of a fund, each investor
is charged a fee, which is calculated as a percentage of the
amount the investor has in the fund. Even if the fund loses
money during a period, the fee is still charged. Although an
annual expense fee may seem relatively small, its effect on
performance over time may be substantial. However, fees
and expenses are only one of several factors that participants
should consider when making investment decisions.
A Note About the Fund’s Risk
Investing in this Fund involves a number of risks, and it is
possible to lose money while investing in this Fund. Bond
fund values fluctuate in response to the financial condition of
individual issuers, general market and economic conditions,
and changes in interest rates. In general, when interest rates
rise, bond fund values fall and investors may lose principal
value. Active trading results in increased turnover and
trading expenses, and may generate higher short-term
capital gains. High yield, lower-rated securities generally
entail greater market, credit/default and liquidity risks, and
may be more volatile than investment grade securities.
Risk Level
Low Medium High
CalPERS Treasury Inflation Protected Securities (TIPS) Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Performance as of September 30, 2012
Past performance does not indicate future results.
Portfolio Net Return
Portfolio Gross Return
Benchmark:
Barclays Capital
US TIPS Index
3 Months 1.91% 2.05% 2.12%
1 Year 8.41% 9.00% 9.10%
3 Years 8.65% 9.29% 9.29%
5 Years 7.53% 8.14% 7.93%
Since Inception Date (6/1/2007)
7.88% 8.48% 8.28%
Objective
The strategic objective of the CalPERS Treasury Inflation Protected
Securities (TIPS) Fund (the “Fund”) is to preserve capital, while
protecting against inflation over the long term by using U.S. government
issued Treasury securities and tracking closely to the Barclays Capital
U.S. TIPS index. There is no guarantee the Fund will achieve its
investment objective.
Strategy
The Fund is actively managed and is designed to identify opportunities
between actual inflation and inflation expectations built into the value of
the securities while managing the risks. The performance of the Fund is
measured against the Barclays Capital U.S. TIPS index, which serves as
the benchmark. The fund invests in U.S. government issued TIPS with a
duration of one year or greater, and its holdings are chosen in order to
replicate or exceed the returns on the benchmark. Therefore, securities
in the Fund’s portfolio may differ or receive a greater allocation than the
securities held in the benchmark should they have higher expected
returns. The average duration of the Fund is expected to remain within
10% of the duration of the benchmark. (See Additional Disclosures to
learn more about the Fund’s benchmark.)
Consider Investing If:
You are an investor near or at retirement who is interested in preserving
capital through inflation protected securities and are moderately
conservative. You should carefully consider the investment objective,
risks, charges, and expenses of the Fund before investing. As always,
you should consult with your financial representative to determine
whether an investment fund option is appropriate for you.
Portfolio Manager Information:
Since the inception of the California Public Employees’ Retirement Fund
in the 1930’s, investments by CalPERS have provided income (in the
form of interest, dividends, and capital gains) to meet the retirement and
health needs of its members. The Fund is internally managed by the
CalPERS Investment Office staff. Although the Fund has been managed
internally by CalPERS since February 1997, it has only been offered
under the CalPERS Supplemental Income Plans (SIP) since June 2007.
What You Own
You own units of the Fund’s portfolio that invests in bonds issued by the
U.S. government. You do not have direct ownership of the securities in
the portfolio.
Risk
The Fund is subject to certain risks depending upon the type of securities
held by the Fund and the management style of the Fund. (See
Additional Disclosures to learn more about the Fund’s risk.)
Price
The unit value of the Fund changes daily, based upon the market value
of the underlying securities. Just as prices of individual securities
fluctuate, the Fund’s unit value changes with market conditions.
Information Accessibility
Since the Fund is not a mutual fund, information is not available from a
newspaper source. The plan’s record keeper will provide you access to
your account information online by visiting the CalPERS Supplemental
Income 457 Plan website at https://calpers.ingplans.com and/or by
calling the Plan toll-free line to speak with a Participant Service
Representative at (800) 260-0659.
Prospectus Information
The Fund consists of assets managed in a commingled fund, specifically
for CalPERS programs. Because it is not a mutual fund, a prospectus is
not available. This summary is designed to provide descriptive
information. Please read it carefully before you invest. For more
detailed information about the Fund, you may contact CalPERS at (800)
696-3907.
Fund Assets
As of September 30, 2012, the total assets under management are
$859,051,598.
Fees of 0.55% have been deducted for investment management and administrative expenses. Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com.
CalPERS Treasury Inflation Protected Securities (TIPS) Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Fees
The annual asset management and administrative fee of the Fund is
0.55%. Fees are netted out of the Fund’s performance daily. The
CalPERS Board of Administration annually reviews the fees and
operating expenses, and changes may be made if appropriate.
Additional Disclosures
Frequent Trading Policy
CalPERS has a new frequent trading policy to secure the investment
performance of the Supplemental Income 457 Plan funds for the benefit
of all investing in the funds. As the funds are designed to achieve
participants’ long-term retirement income goals, short-term trading will be
limited. Multiple round trip trades into and out of a fund may be subject
to these restrictions. For more information on the Supplemental Income
Plans’ Excessive Short-term Trading restrictions, please see the
Supplemental Income Plans Policy at:
http://www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home
.xml
About The Fund’s Benchmark
The Barclays Capital U.S. TIPS Index serves as the benchmark. You
may not invest directly in this index. The fund invests in U.S.
government issued TIPS with a duration of one year or greater. TIPS
are backed by the full faith and credit of the U.S. Government and are
designed to help protect investors from inflation. The inflation protection
built into TIPS is designed to provide investors with predictable real
returns and an explicit hedge against inflation. An investment in the
Fund is not a bank deposit, and it is not insured or guaranteed by the
Federal Deposit Insurance Corporation.
Expenses
Expenses are an important aspect of investing. To pay for the
administration and management of a fund, each investor is charged a
fee, which is calculated as a percentage of the amount the investor has
in the fund. Even if the fund loses money during a period, the fee is still
charged. Although an annual fee may seem relatively small, its effect on
performance over time may be substantial. However, fees and expenses
are only one of the several factors that participant should consider when
making investment decisions.
A Note About the Fund’s Risk
Investing in this Fund involves a number of risks. Real interest-rate
increases may cause bond prices to decline. The opposite is true when
real interest rates decline. The real interest rate is the current market
interest rate minus the market’s inflation expectations. At any given time
your shares may be worth less than the price you paid for them. The
Fund’s ability to achieve its investment objective depends in part on the
managers’ skill in selecting and weighting the underlying securities.
Risk Level
Low Medium High
CalPERS Small & Mid Cap Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Objective
The strategic objective of the CalPERS Small and Mid Cap
Index Fund (the Fund) is to obtain US small to mid-size
company exposure by closely tracking the designated
benchmark index, the Russell 2500 Index. There is no
guarantee the Fund will achieve its investment objectives.
Strategy
The Fund is designed in a manner that is consistent with
achieving the stated performance objective. This shall
necessitate a broadly diversified portfolio managed in a
passive index approach with risk characteristics closely
resembling the benchmark index. The portfolio normally
holds all 2500 securities in the Index. Since holding the
exact number of shares in the benchmark can be expensive
and cause constant rebalancing, an optimized index
approach may be used to create a portfolio that closely
resembles the benchmark characteristics. (See Additional
Disclosures to learn more about the Fund’s benchmark.)
Consider Investing if:
You are a long-term investor who is interested in investing in
the U.S. stock market and is moderately aggressive or
seeking long-term growth through capital appreciation. You
should carefully consider the investment objective, risks and
expenses of the Fund before investing. As always, you
should consult with your financial representative to determine
whether an investment fund option is appropriate for you.
Portfolio Manager Information:
The Fund is managed internally by CalPERS Investment
Office staff for the CalPERS Supplemental Income Plans
(SIP) since June 2007. Since the inception of the Public
Employees’ Retirement Fund in the 1930s, investments by
CalPERS have provided income (in the form of interest,
dividends, and capital gains) to meet the retirement and
health needs of its members.
Fees
The annual asset management and administrative fee of the
CalPERS SMID Index Fund is 0.40%. Fees are netted out of
the Fund’s performance daily. The CalPERS Board of
Administration annually reviews the fees and operation
expenses, and changes may be made if appropriate.
Important Facts
What You Own You own units of the Fund’s portfolio that invests in stock of small and mid cap corporations. You do not have direct ownership of the securities in the portfolio.
Price
The unit value of the Fund changes daily, based upon the
market value of the underlying securities. Just as prices in
individual securities fluctuate, the Fund’s unit value
changes with market condition.
Performance as of September 30, 2012
Past performance does not indicate future results.
Portfolio Net
Return
Portfolio
Gross Return
Benchmark Russell
2500 Index
3 Month 5.48% 5.58% 5.57%
1 Year 31.10% 31.61% 30.93%
3 Years 13.91% 14.34% 14.06%
5 Years 2.57% 2.97% 2.80%
Since inception under SIP (June 2007)
1.53% 1.96% 1.79%
Top 10 Holdings as of September 30, 2012
Government STIF 7 BPS ERISA 0.78%
eMini S&P 400 (CME) Dec 12 0.47%
Mini Russell 2000 (NYF) Dec 12 0.40%
Catamaran Corp. 0.36%
HollyFrontier Corp. 0.31%
SBA Communications Corp. 0.28%
TransDigm Group Inc. 0.26%
Alliance Data Systems Corp. 0.26%
Ansys Inc. 0.25%
Federal Realty Investment Trust 0.24%
* Fees of 0.40% have been deducted for investment management and administrative expenses. Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown above. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com
CalPERS Small & Mid Cap Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Risk
The Fund is subject to certain risks depending upon the type
of securities held by the Fund and the management style of
the Fund. (See the Additional Disclosure to learn more
about the Fund’s risk.)
Information Accessibility
Since the Fund is not a mutual fund, information is not
available from a newspaper source. The plan’s record
keeper will provide you access to your account information
online by visiting the CalPERS Supplemental Income 457
Plan website at https://calpers.ingplans.com and/or by calling
the Plan Information Line at (800) 260-0659.
Prospectus Information
The CalPERS SMID Index Fund consists of assets managed
in a separate account, specifically for CalPERS Plans.
Because it is not a mutual fund, a prospectus is not available.
This summary is designed to provide descriptive information.
Please read carefully before you invest. For more detailed
information about the Fund, you may contact CalPERS at
(800) 696-3907.
Fund Statistics Expense Ratio: 0.40%
As of September 30, 2012, the total assets under management are $123,893,738.
Asset Class: Domestic Stock
Category: Small-Midcap Blend
Number of Holdings: 2500
Additional Disclosures
Frequent Trading Policy
CalPERS has a frequent trading policy to secure the
investment performance of the Supplemental Income 457
Plan funds for the benefit of all investing in the funds. As the
funds are designed to achieve participants’ long-term
retirement income goals, short-term trading will be limited.
Multiple round trip trades into and out of a fund may be
subject to these restrictions. For more information on the
Supplemental Income Plans’ Excessive Short-term Trading
restrictions, please see the Supplemental Income Plans
Policy at:
www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml
About the Fund’s Benchmark
The Russell 2500 Index measures the performance of the
small to mid cap segment of the U.S. equity universe,
commonly referred to as “SMid Cap”. The Russell 2500
Index is a subset of the Russell 3000 Index. It includes
approximately 2500 of the smallest securities based on a
combination of their market cap and current index
membership. The Russell 2500 Index is constructed to
provide a comprehensive and unbiased barometer for the
small to mid-cap segment. The Index is completely
reconstituted annually to ensure larger stocks do not distort
the performance and characteristics of the true small to mid
cap opportunity set.
Expenses
Expenses are an important aspect of investing. To pay for
the administration and management of a fund, each investor
is charged a fee, which is calculated as a percentage of the
amount the investor has in the fund. Even if the fund loses
money during a period, the fee is still charged. Although an
annual expense fee may seem relatively small, its effect on
performance over time may be substantial. However, fees
and expenses are only one of several factors that participants
should consider when making investment decisions.
A Note About the Fund’s Risk
The Fund is subject to the following principal investment
risks: Stock Market Volatility—Stock markets are volatile and
can rise or decline significantly in response to company,
political, regulatory, market or economic developments. The
Fund’s total return, like stock prices generally, will fluctuate
within a wide range, so an investor could lose money over
short or even long periods. Stock markets tend to move in
cycles, with periods of rising prices (bull markets), and
periods of falling prices (bear markets). The Fund is also
subject to investment-style risk, which is the chance that
returns from small and midsized company stocks will trail
returns from other asset classes (i.e. large company stocks
or bonds) or the overall stock market. Smid cap stocks, as a
group, have historically exhibited greater short-term volatility
than that of the S&P 500 Index.
Risk Level
Low Medium High
CalPERS S&P 500 Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Objective The strategic objective of the S&P 500 Fund (the Fund) is to obtain broad Large Company U.S. equity exposure by closely tracking the designated benchmark index, the S&P 500 Index. There is no guarantee the Fund will achieve its investment objective.
Strategy The portfolio shall be constructed in a manner that is consistent with achieving the stated performance objective. This shall necessitate a broadly diversified portfolio managed in a passive index approach with risk characteristics closely resembling the benchmark index. The portfolio normally holds all 500 securities in the Index. Since holding the exact number of shares in the benchmark can be expensive and cause constant rebalancing, an optimized index approach may be used to create a portfolio that closely resembles the benchmark characteristics. (See Additional Disclosures to learn more about the Fund’s benchmark.)
Consider Investing If You are a long-term investor who is interested in investing in the U.S. stock market and is moderately conservative or seeking long-term growth through capital appreciation. The Fund may be appropriate for an investor seeking core large cap equity exposure with market-like risks. You should carefully consider the investment objective, risks and expenses of the Fund before investing. As always, you should consult with your financial representative to determine whether an investment fund option is appropriate for you.
Portfolio Manager Information Since the inception of the Public Employees’ Retirement Fund in the 1930s, investments by CalPERS have provided income (in the form of interest, dividends, and capital gains) to meet the retirement and health needs of its members. The Fund has been internally managed by CalPERS Investment Office staff since 1991, and has been offered under the CalPERS Supplemental Income Plans (SIP) since February 1995.
What You Own You own units of a portfolio that invests in stocks of U.S. large companies. You do not have direct ownership of the securities in the portfolio. The Fund owns each of the stocks in the S&P 500 Index in the corresponding weight within the index. Full replication results in a portfolio that exhibits relatively low turnover and trading costs and tighter tracking to the index, the Fund will remain fully invested in equities at all times.
Price The unit value of the portfolio changes daily, based upon the market value of the underlying securities. Just as prices in individual securities fluctuate, the Fund’s unit value changes with market conditions.
Risk The Fund is subject to certain risks depending upon the type of securities held by the Fund and the management style of the Fund. (See Additional Disclosures to learn more about the Fund’s risk.)
Information Accessibility Since the Fund is not a mutual fund, information is not available from a newspaper source. The SIP record keeper will provide you access to your account information online by visiting our website at https://calpers.ingplans.com and/or by calling the Plan Information Line at (800) 260-0659.
Performance as of September 30, 2012
Past performance does not indicate future results.
Portfolio
Net Return
Portfolio Gross Return
Benchmark
S&P 500 Index
3 Months 6.27% 6.37% 6.35%
1 Year 29.80% 30.26% 30.20%
3 Years Annualized
12.89% 13.26% 13.20%
5 Years Annualized
0.86% 1.21% 1.05%
10 Years Annualized
7.75% 8.11% 8.01%
Since Inception under SIP
(Inception Date 02/01/95)
7.95% 8.57% 8.54%
* Fees of 0.35% have been deducted for investment management and administrative expenses. Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown above. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com
CalPERS S&P 500 Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Prospectus Information The Fund consists of assets managed by CalPERS, specifically for CalPERS Plans. Because it is not a mutual fund, a prospectus is not available. This summary is designed to provide descriptive information. Please read carefully before you invest. For more detailed information
about the Fund, you may contact CalPERS at (800) 696-3907.
Fund Statistics Expense Ratio: 0.35%
As of September 30, 2012, the total assets under management are $299,053,748.
Asset Class: Domestic Stock
Category: Large Blend
Number of Holdings: 500
Fees The annual asset management and administrative fee of the CalPERS S&P 500 Fund is 0.35%. Fees are netted out of the Fund’s performance daily. At least annually, the CalPERS Board of Administration reviews the fees and operation expenses, and changes may be made if appropriate.
About the Fund’s Benchmark The S&P 500 Fund consists of 500 of the largest companies in the U.S. stock market. Large companies have historically provided a more stable return than small or medium sized companies.
Additional Disclosures
Frequent Trading Policy CalPERS has a frequent trading policy to secure the investment performance of the Supplemental Income 457 Plan funds for the benefit of all investing in the funds. As the funds are designed to achieve participants’ long-term retirement income goals, short-term trading will be limited. Multiple round trip trades into and out of a fund may be subject to these restrictions. For more information on the Supplemental Income Plans’ Excessive Short-term Trading restrictions, please see the Supplemental Income Plans Policy at: www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml
Expenses Expenses are an important aspect of investing. To pay for the administration and management of a fund, each investor is charged a fee, which is calculated as a percentage of the amount the investor has in the fund. Even if the fund loses money during a period, the fee is still charged. Although an annual expense fee may seem relatively small, its effect on performance over time may be substantial. However, fees and expenses are only one of several factors that participants should consider when making investment decisions.
A Note About the Fund’s Risk The Fund is subject to the following principal investment risks: Stock Market Volatility—Stock markets are volatile and can rise or decline significantly in response to company, political, regulatory, market or economic developments. The Fund’s total return, like stock prices generally, will fluctuate within a wide range, so an investor could lose money over short or even long periods. Stock markets tend to move in cycles, with periods of rising prices (bull markets), and periods of falling prices (bear markets). The Fund is also subject to investment-style risk, which is the chance that returns from large company stocks will trail returns from other asset classes (i.e. small company stocks or bonds) or the overall stock market.
Risk Level
Low Medium High
Top 10 Holdings as of September 30, 2012
Apple Inc. 4.86%
Exxon Mobil Corp. 3.28%
General Electric Co. 1.86%
Chevron Corp. 1.78%
Microsoft Corp. 1.74%
International Business Machines Corp. 1.73%
AT&T Corp. 1.69%
Google Inc. Cl A 1.55%
Procter & Gamble Co. 1.48%
Johnson & Johnson 1.47%
All data is as of 9/30/12. There may be material differences between the representative account and other accounts managed with
the same strategy. Because of these differences, the information based on the representative account should not necessarily be
relied upon. Past performance is not a guarantee for future performance. No investment strategy or risk management technique can
guarantee returns or eliminate risk in any market environment. Please refer to the back page for other important disclosures.
Performance Review
Quarterly Review*
Strategy Overview
CalPERS Supplemental Income Plans – 457 Plan
US Small Mid Cap Growth Equity
Third Quarter 2012
Sector Weights (%)
CalPERS Portfolio Performance Results* (%)
5.0
16.5
32.7
16.0 19.2
5.2
14.1
29.5
15.2
22.2
0
10
20
30
40
Quarter YTD One Year Three Years Since
Inception
(12/1/08)**
■ CalPERS Portfolio (net-of-fees) ■ Russell 2500 Growth ■ Composite (gross-of-fees)
■ Portfolio ■ Russell 2500 Growth
**NTM Based on IBES
*Returns greater than one year are annualized **Performance inception date of 12/01/2008 per the direction of CalPERS. Actual inception date for the CalPERS
Supplemental Income Plans portfolio is 10/06/2008.
Composite Final Performance Results* (%)
*Representative institutional account – Where applicable, excludes cash and futures. ETFs are appropriately allocated according to their constituent exposure.
5.2
17.2
33.8
17.0
5.1
13.8
5.2
14.1
29.5
15.2
3.3
11.3
0
10
20
30
40
Quarter YTD 1 Year 3 Years 5 Years Since Inception
(4/1/03)
Portfolio Characteristics
Portfolio Index
Price/Earnings Ratio** 19.1x 19.9x
Long Term Growth Rate 16.5% 16.1%
P/E to Growth Rate** 1.16x 1.23x
Weighted Avg. Market Cap $4.2B $2.9B
Debt/Capital 24% 36%
Five Largest Holdings
Holding Name Sector Portfolio
Urban Outfitters Inc. Consumer Discretionary 2.2
Akamai Technologies Inc. Information Technology 2.0
Jacobs Engineering Group Inc. Industrials 1.9
Aruba Networks Inc. Information Technology 1.8
Synopsys Inc. Information Technology 1.7
Total 9.6%
21
5 6 4
20
16
25
3 0 0
18
4 5
10
17 16
21
7
2 1
0
5
10
15
20
25
30
Consumer
Discretionary
Consumer Staples Energy Financials Health Care Industrials Information
Technology
Materials Telecomm
Services
Utilities
Key Facts
Assets Under Management
$1.7 billion
Benchmark
Russell 2500 Growth Index
Inception
April 2003
Investment Vehicles
Separate Account,
Commingled Vehicles
Key Stats & Risk Management
Typical Holdings 90-150
Information Ratio* 0.31
Annualized Alpha* 2.01%
Tracking Error* 5.90%
*5 years as of 9/30/12
Team
B. Randall Watts, Jr., CFA, and Todd Wakefield, CFA, serve as lead portfolio managers for the
strategy. Their team of seven investment professionals manages $3.7 billion in total assets.
Objective
The Boston Company Asset Management’s US Small Mid Cap Growth Equity strategy seeks to
outperform the Russell 2500 Growth Index over a long-term investment horizon.
Strategy Highlights
• Experienced investment team with a demonstrated record of success.
• Dynamic approach to idea generation, leveraging a team-driven decision-making process with
strict risk controls emphasized by automatic stop-loss trigger.
• Disciplined approach that seeks to generate consistent above-average risk-adjusted
performance relative to peers and benchmark.
Disclosure
US Small Mid Cap Growth Equity
Contact
For more information about our strategies, please contact:
www.thebostoncompany.com
Director of Sales & Relationship Management
John D. Havens
(617) 722-7031
Global Head of Distribution
Daniel J. McCormack
(617) 722-7376
Compliance Statement
The Boston Company Asset Management, LLC (TBCAM) claims compliance with the Global Investment Performance Standards (GIPS®). TBCAM has
been independently verified for the years 2003 - 2011.
Definition of the Firm
The Boston Company Asset Management, LLC (TBCAM) is a registered investment adviser established in 1970 and a subsidiary of The Bank of New
York Mellon Corporation.
Composite Description
The US Small Mid Cap Growth Equity Composite creation date is April 1, 2003. The Composite is composed of all fee-paying, discretionary accounts
managed by TBCAM in this investment style. The US Small Mid Cap Growth Equity Composite represents an equity strategy that primarily invests in
small and mid capitalization U.S. growth companies. Small and mid capitalization companies are those with a market capitalization within the same
general range as the issuers included in the benchmark. The strategy can invest in American Depositary Receipts. The use of derivatives is permitted.
Prior to March 1, 2007, the Composite was known as the Small/Midcap Growth Equity Composite. The performance presented prior to July 1, 2003
occurred while the investment personnel were employed at an affiliated firm. No material change in investment personnel responsible for the investment
process occurred on July 1, 2003 when the investment personnel were integrated into TBCAM. The performance of the Composite is based in U.S.
dollars.
Benchmark
The Composite’s benchmark is the Russell 2500 Growth Index. The benchmark is used for comparative purposes only and is not covered by the Report
of Independent Accountants. The Russell 2500 Growth Index measures the performance of the small to mid-cap growth segment of the U.S. equity
market.
Past performance is not an indication of future performance. The list of equity holdings should not be considered a recommendation to purchase or sell
a particular security. Certain securities may not remain in the portfolio at the time that you receive this report. You should not assume that investments in
the securities were or will be profitable or that decisions we make in the future will be profitable. This presentation or any portion thereof may not be
copied or distributed without TBCAM’s prior written approval. Statements are correct as of the date of the material only. There may be material
differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information
based on the representative account should not necessarily be relied upon.
This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is
unlawful or not authorized.
To receive a complete list and description of TBCAM composites and/or a presentation that complies with the requirements of the GIPS standards,
please contact [email protected].
Period
Gross-of-
Fees Return
Net-of-Fees
Return
Benchmark
Return
3 Yr. Annualized
Standard Deviation Number of
Portfolios
Internal
Dispersion
Total Composite
Assets
Total Firm
Assets
Composite Benchmark (USD Million) (USD Million)
2003* 53.56% 52.58% 51.14% < 3 Years 26.88% 1 N/M $8 $34,300
2004 16.74% 15.71% 14.59% < 3 Years 19.72% 1 N/M $9 $49,492
2005 8.57% 7.61% 8.18% < 3 Years 14.70% 2 N/M $28 $59,997
2006 15.35% 14.33% 12.26% 11.96% 13.44% 3 N/M $41 $72,747
2007 21.64% 20.57% 9.69% 11.38% 12.54% 4 N/M $115 $53,308
2008 -35.71% -36.31% -41.50% 18.63% 20.93% 5 N/M $118 $26,213
2009 26.24% 25.14% 41.66% 21.02% 24.54% 7 N/M $584 $34,783
2010 23.38% 22.30% 28.86% 22.90% 27.21% 11 N/M $1,400 $39,438
2011 6.62% 5.68% -1.57% 18.77% 22.94% 10 0.12% $1,458 $37,484
*Partial period represents data from 4/1/2003
N/M = not meaningful
129
32
45
Strategy Overview Third Quarter 2012
All data is as of 9/30/12. There may be material differences between the representative account and other accounts managed with
the same strategy. Because of these differences, the information based on the representative account should not necessarily be
relied upon. Past performance is not a guarantee for future performance. No investment strategy or risk management technique can
guarantee returns or eliminate risk in any market environment. Please refer to the back page for other important disclosures.
CalPERS Supplemental Income Plans – 457 Plan
US Small Mid Cap Value Equity
Performance Review
Quarterly Review*
Sector Weights (%)
■ Portfolio ■ Russell 2500 Value
CalPERS Portfolio Performance Results* (%)
4.7
9.8
29.4
9.3
14.3
5.9
14.5
32.2
13.1
17.7
0
10
20
30
40
Quarter YTD One Year Three Years Since Inception
(12/1/08)**
■ CalPERS Portfolio (net-of-fees) ■ Russell 2500 Value ■ Composite (gross-of-fees)
*Returns greater than one year are annualized **Performance inception date of 12/01/2008 per the direction of CalPERS. Actual inception date for the CalPERS
Supplemental Income Plans portfolio is 10/06/2008.
Composite Final Performance Results* (%)
*Representative institutional account – Where applicable, excludes cash and futures. ETFs are appropriately allocated according to their constituent exposure.
4.9
10.8
30.7
10.4
2.1 5.6 5.9
14.5
32.2
13.1
2.2 4.3
0
10
20
30
40
Quarter YTD 1 Year 3 Years 5 Years Since Inception
(9/1/05)
Portfolio Characteristics
Portfolio Index
Price/Earnings FY1 14.3x 14.7x
Price/Book Value 1.7x 1.3x
Debt/Capital 34% 40%
IBES Long Term Growth Rate 13% 10%
Dividend Yield 1.3% 2.1%
Weighted Avg. Market Cap $3.3B $2.7B
Five Largest Holdings
Holding Name Sector Portfolio
Spirit AeroSystems Holdings Inc. Industrials 1.7
Mednax Inc. Health Care 1.7
Raymond James Financial Inc. Financials 1.7
City National Corp. Financials 1.7
Toll Brothers Inc. Consumer Discretionary 1.7
Total 8.5%
16
4
8
23
7
14 16
6
0
7
11
2
7
33
6
13 10
7
1
9
0
5
10
15
20
25
30
35
Cons Discretionary Cons Staples Energy Financials Health Care Industrials Info Technology Materials Telecom Services Utilities
Key Facts
Assets Under Management
$661.0 million
Benchmark
Russell 2500 Value Index
Inception
September 2005
Investment Vehicles
Separate Account,
Commingled Vehicles
Key Stats & Risk Management
Typical Holdings 90-120
Information Ratio* -0.03
Annualized Alpha* -0.11%
Tracking Error* 4.75%
*5 years as of 9/30/12
Team
Joseph M. Corrado, CFA, leads a portfolio team of seven investment professionals who manage
$2.8 billion in total assets.
Objective
The Boston Company Asset Management’s US Small Mid Capitalization Value Equity strategy
seeks to outperform the Russell 2500 Value Index over a long-term investment horizon.
Strategy Highlights
• Experienced investment team with a demonstrated record of success.
• Investment process focused on valuation, fundamentals, and catalyst identification as a
cornerstone to successful value investing.
• Disciplined approach that seeks to generate consistent above-average risk-adjusted
performance relative to peers and benchmark.
Disclosure
US Small Mid Cap Value Equity
Contact
For more information about our strategies, please contact:
www.thebostoncompany.com
Director of Sales & Relationship Management
John D. Havens
(617) 722-7031
Global Head of Distribution
Daniel J. McCormack
(617) 722-7376
Compliance Statement
The Boston Company Asset Management, LLC (TBCAM) claims compliance with the Global Investment Performance Standards (GIPS®). TBCAM has
been independently verified for the years 2003 - 2011.
Definition of the Firm
The Boston Company Asset Management, LLC (TBCAM) is a registered investment adviser established in 1970 and a subsidiary of The Bank of New
York Mellon Corporation.
Composite Description
The US Small Mid Cap Value Equity Composite creation date is September 1, 2005. The Composite is composed of all fee-paying, discretionary
accounts managed by TBCAM in this investment style. The US Small Mid Cap Value Equity Composite represents an equity strategy that primarily
invests in small and mid capitalization U.S. value companies. Small and mid capitalization companies are those with a market capitalization within the
same general range as the issuers included in the benchmark. The strategy can invest in American Depositary Receipts. The use of derivatives is
permitted. Prior to March 1, 2007, the Composite was known as the Small/Midcap Value Equity Composite. The performance of the Composite is based
in U.S. dollars.
Benchmark
The Composite’s benchmark is the Russell 2500 Value Index. The benchmark is used for comparative purposes only and is not covered by the Report of
Independent Accountants. The Russell 2500 Value Index measures the performance of the small to mid-cap value segment of the U.S. equity market.
Past performance is not an indication of future performance. The list of equity holdings should not be considered a recommendation to purchase or sell
a particular security. Certain securities may not remain in the portfolio at the time that you receive this report. You should not assume that investments in
the securities were or will be profitable or that decisions we make in the future will be profitable. This presentation or any portion thereof may not be
copied or distributed without TBCAM’s prior written approval. Statements are correct as of the date of the material only. There may be material
differences between the representative account and other accounts managed with the same strategy. Because of these differences, the information
based on the representative account should not necessarily be relied upon.
This document may not be used for the purpose of an offer or solicitation in any jurisdiction or in any circumstances in which such offer or solicitation is
unlawful or not authorized.
To receive a complete list and description of TBCAM composites and/or a presentation that complies with the requirements of the GIPS standards,
please contact [email protected].
Period
Gross-of-
Fees Return
Net-of-Fees
Return
Benchmark
Return
3 Yr. Annualized
Standard Deviation Number of
Portfolios
Internal
Dispersion
Total Composite
Assets
Total Firm
Assets
Composite Benchmark (USD Million) (USD Million)
2005* 3.39% 3.09% 1.04% < 3 Years 12.81% 1 N/M $156 $59,997
2006 18.14% 17.10% 20.18% < 3 Years 10.85% 1 N/M $184 $72,747
2007 2.31% 1.40% -7.27% < 3 Years 11.03% 4 N/M $332 $53,308
2008 -29.81% -30.45% -31.99% 17.12% 18.38% 4 N/M $271 $26,213
2009 30.57% 29.43% 27.68% 21.20% 24.61% 5 N/M $577 $34,783
2010 20.11% 19.06% 24.82% 23.97% 26.97% 5 N/M $616 $39,438
2011 -3.67% -4.53% -3.36% 22.20% 24.23% 7 N/M $714 $37,484
*Partial period represents data from 9/1/2005
N/M = not meaningful
130
32
42
ObjectiveLong-term growth of capital
Investment Strategy
� Targets a diversified range of companies whose long-term earnings powerand dividend-paying capability do not appear to be reflected in their currentshare price
� Employs a disciplined investment philosophy and bottom-up approach toidentify undervalued stocks
� Combines fundamental and quantitative research to increase theeffectiveness of the portfolio
� The Portfolio’s Advisor selects its top-ranked value stocks that help diversifythe Portfolio risk, taking into account exposure to different economic sectors
� The Portfolio’s performance is measured against the Russell 1000 ValueIndex which represents the performance of 1000 large-cap value companieswithin the US
Primary Investments
� Invests primarily in US stocks, although it may invest in non-US stocks
Manager SummaryThe Portfolio’s Advisor is AllianceBernstein L.P. AllianceBernstein deliverspreeminent investment services in key asset classes—Alliance Growth Equities,Bernstein Value Equities, AllianceBernstein Blend Strategies, AllianceBernsteinFixed Income and AllianceBernstein Alternative Investments. In addition todefined contribution plans, our clients include pension plans, foundations andendowments, insurance companies, central banks, governments, high-net-worthand retail clients in 25 countries.
Top Ten Holdings1
Pfizer 5.58%...................................................................................................Astrazeneca 4.22...................................................................................................Wellpoint 4.16...................................................................................................BP 4.12...................................................................................................Citigroup 3.99...................................................................................................Wells Fargo 3.96...................................................................................................ExxonMobil 3.51...................................................................................................Hewlett-Packard 3.46...................................................................................................Kroger 3.24...................................................................................................Cit Group 2.79
Sector Breakdown2
Consumer Discretionary 22.51%...................................................................................................Health Care 19.14...................................................................................................Financials 18.91...................................................................................................Energy 12.24...................................................................................................Information Technology 11.62...................................................................................................Consumer Staples 8.89...................................................................................................Industrials 2.60...................................................................................................Utilities 1.77...................................................................................................Telecommunication Services 1.20...................................................................................................Materials 1.12Actual allocations will change over time.
General InformationInception Date 6/1/07....................................................................................................Portfolio Turnover Rate (as of 12/31/11) 82%....................................................................................................Total Number of Holdings 59
Annualized Returns*Qtr. 1 Year 3 Years 5 Years 10 Years
SinceInception*
TotalOperating Expenses†
Large Cap Value Portfolio 4.20% 20.70% 5.45% – 3.78% — – 3.73% 0.90%...........................................................................................................................................................................................................Russell 1000 Value Index 6.51% 30.92% 11.84% – 0.90% — – 1.33%*Performance is presented net of fees. The Portfolio’s inception date is 6/1/07. Periods less than one year represent cumulative returns. Please see the next page for gross of fee returns for an InstitutionalComposite similar to this strategy.
1Holdings are expressed as a percentage of total investments and may vary over time. They are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securitiesmentioned. Columns may not sum due to rounding.
2Holdings are expressed as a percentage of total market value of the equity portion of the portfolio and may vary over time. Columns may not sum due to rounding.Past performance is no guarantee of future results.Investors cannot invest directly in indices.†As of 9/30/12.Source: AllianceBernstein. State Street Investment Analytics provided the Large Cap Value Portfolio and Russell 1000 Value Index returns.
A Word About RiskMarket Risk: The market values of the portfolio’s holdings rise and fall from day to day, so investments may lose value.Foreign (Non-US) Risk: Investing in non-US securities may be more volatile because of political, regulatory, market and economic uncertainties associated with suchsecurities. These risks are magnified in securities of emerging or developing markets.Currency Risk: If a non-US security’s trading currency weakens versus the US dollar, its value may be negatively affected when translated back into US dollar terms.Derivatives Risk: Investing in derivative instruments such as options, futures, forwards or swaps can be riskier than traditional investments, and may be more volatile,especially in a down market.Value Investing: Value investing does not guarantee a profit or eliminate risk. Not all companies whose stocks are considered to be value stocks are able to turn theirbusiness around or successfully employ corrective strategies which would result in stock prices that rise as initially expected.
3Q9/30/12
�Supplemental Income Plans�CalPERS 457 PlanAllianceBernstein Large Cap Value Portfolio
VALU
E
Annualized Composite Returns*1 Year 3 Years 5 Years 10 Years 20 Years
Strategic Value Composite 22.05% 6.45% – 5.67% 5.78% —..........................................................................................................................Russell 1000 Value Index 30.92% 11.84% – 0.90% — —*The Composite’s inception date is 12/31/73. The returns are presented gross of fees. The returns do notinclude the deduction of investment management or other fees which would lower a participant’sreturn.
Source: AllianceBernstein
Annual Composite Returns*
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011-60
-40
-20
0
20
40%
TotalReturn-16.97 32.62 14.14 9.24 20.80 -1.01 -46.57 29.44 12.27 -6.71
Composite Performance DisclosureComposite performance shown above is that of the institutional manager’s US Strategic Value composite through September 30, 2012 and may not be indicative of results of theAllianceBernstein Large Cap Value Portfolio. Rates of return are asset weighted. Please refer to the Disclosures on this page. Performance is shown gross-of-fees, an investment in thePortfolio would experience higher fees, which would affect performance.The Portfolio has a limited operating history. Performance shown is presented for informational purposes only. Past performance is not indicative of future results. No representation or warranty is made as theefficacy of any particular strategy or the actual returns that may be achieved.AllianceBernstein manages discretionary tax-exempt accounts of institutional clients without significant client-imposed restrictions. Certain of these accounts (the “Composite”) have substantially the sameinvestment objectives and policies and are managed in accordance with essentially the same investment strategies and techniques as will be used by AllianceBernstein for the Portfolio. The Composite performancemay not be indicative of future results of the Portfolio and, because of ongoing market volatility, the Portfolio’s performance may be subject to substantial fluctuations.
Bernstein Value Equities—US Strategic Value Composite —Supplemental Performance Information
Period
CompositeAssets (US
Dollar Millions)
CompositeAccounts at
End of Period Gross Return (%) Net Return (%)Composite
Dispersion (%)Total Firm Assets
(US Dollar Billions)
Russell® 1000Value IndexReturn (%)
S&P 500 IndexReturn (%)
2011 1,406.6 22 – 6.74 – 7.58 0.45 336.5 0.39 2.11........................................................................................................................................................................................................................................................................2010 3,868.0 48 12.27 11.27 0.68 399.8 15.51 15.06........................................................................................................................................................................................................................................................................2009 4,628.3 85 29.33 28.18 2.04 419.8 19.69 26.46........................................................................................................................................................................................................................................................................2008 5,429.8 127 – 46.57 – 46.80 0.72 389.1 – 36.85 – 37.00........................................................................................................................................................................................................................................................................2007 14,238.0 186 – 1.01 – 1.35 0.96 689.9 – 0.17 5.49........................................................................................................................................................................................................................................................................2006 17,369.7 207 20.80 20.33 0.61 622.0 22.25 15.79........................................................................................................................................................................................................................................................................2005 15,780.0 205 9.24 8.77 1.02 494.5 7.05 4.91........................................................................................................................................................................................................................................................................2004 14,832.2 210 14.14 13.64 1.12 465.8 16.49 10.88........................................................................................................................................................................................................................................................................2003 12,892.7 208 32.62 32.01 1.29 420.0 30.03 28.68........................................................................................................................................................................................................................................................................2002 11,610.0 212 – 16.97 – 17.34 1.56 346.9 – 15.52 – 22.10........................................................................................................................................................................................................................................................................3 Years* 10.63 9.65 11.55 14.11........................................................................................................................................................................................................................................................................5 Years* – 6.46 – 7.10 – 2.64 – 0.25........................................................................................................................................................................................................................................................................10 Years* 1.74 1.16 3.89 2.92*annualized through most recent year-end1) PRESENTATION OF THE FIRM—AllianceBernstein L.P. (“ABLP”) is a registered investment advisor with the US Securities and Exchange Commission. AllianceBernstein Institutional Investments andAllianceBernstein Investments (collectively, the “Firm”) is the institutional and retail sales, marketing and client service unit of ABLP. In February 2006, Alliance Capital Management L.P. changed its name to ABLP.2) COMPLIANCE—The Firm claims compliance with the Global Investment Performance Standards (GIPS®) and has prepared and presented this report in compliance with the GIPS standards. The Firm has beenindependently verified on an annual basis from 1993 through 2010. Verification assesses whether (1) the Firm has complied with all the composite construction requirements of the GIPS standards on a firmwidebasis and (2) the Firm’s policies and procedures are designed to calculate and present performance in compliance with the GIPS standards. The US Strategic Value (>=$5mm) Composite has been examined from1993 through 2010. The verification and performance examination reports are available upon request.3) COMPOSITE DESCRIPTION—The performance results displayed herein represent the investment performance record for the institutional US Strategic Value Composite (the “Composite”). The Composite includesall fee-paying institutional discretionary accounts and, when applicable, pooled investment vehicles, with assets over 5 million in US dollars. The Composite consists of accounts which invest in the US equity marketand seek a long-term premium relative to the Russell® 1000 Value index with little sensitivity to the benchmark. Prior to 2011, the Composite did not include pooled investment vehicles. Prior to December 31,2010, the composite accounts sought a long-term premium relative to the S&P 500 and Russell® 1000 Value indices. The change to the primary benchmark on December 31, 2010 from the S&P 500 index to theRussell® 1000 Value index was made to more appropriately reflect the investment style of the service and has been applied retroactively since the inception of the Composite. There has been no change to theinvestment process or universe of securities from which the portfolio is constructed. Prior to August 2010, the value portion of blend accounts were managed as a stand alone account with its own cash balanceand included in the composite. The creation date of this Composite is March 2002. A complete list with descriptions of all composites managed by the Firm and/or additional information regarding policies forvaluing accounts, calculating performance, and preparing compliant presentations is available upon request via email to [email protected]) TOTAL RETURN METHODOLOGY AND FEE STRUCTURE—Performance figures in this report have been presented gross and net of investment-management fees. Net performance figures have been calculated bydeducting the highest fee payable by an account of this type; 0.90% of assets, annually. Prior to January 2009, the Composite’s net-of-fee return is the asset-weighted average of the actual after-fee returns ofeach account in the Composite. The current investment advisory fee schedule applicable for this Composite is as follows: 0.900% on the first 15 million in US Dollars; 0.500% on the next 35 million in US Dollars;0.400% on the balance.5) RATE OF RETURN—No representation is made that the performance shown in this presentation is indicative of future performance. An account could incur losses as well as generate gains. Performance figuresfor each account are calculated monthly on a trade-date basis using a total rate-of-return calculation. Monthly fair values include income accruals, realized and unrealized gains and losses and reflect the dailyweighting of cash flows. The Composite returns are calculated based on the asset-weighted monthly composite constituent account returns where the weight is the beginning fair value of the accounts.6) DISPERSION—Internal dispersion is calculated using the asset-weighted standard deviation of all accounts included in the composite for the entire year; it is not presented for periods less than one year or whenthere were fewer than two accounts in the composite for the entire year. The three-year annualized ex post standard deviation measures the variability of the composite and the benchmark returns over thepreceding 36-month period; it is not presented for periods of less than three years. The benchmark, which is not covered by the report of independent verifiers, is the Russell® 1000 Value Index. The SecondaryBenchmark is a supplemental benchmark.CalPERS has a new frequent trading policy to secure the investment performance of the Supplemental Income 457 Plan funds for the benefit of all investing in the funds. As the funds are designed to achieveparticipants’ long-term retirement income goals, short-term trading will be limited. Multiple round trip trades into and out of a fund may be subject to these restrictions. For more information on the SupplementalIncome Plans’ Excessive Short-term Trading restrictions, please see the Supplemental Income Plans Policy at: www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml.The Portfolio is a separately managed account that is not a registered mutual fund and is exempt from investment company registration under the Investment Company Act of 1940.Therefore no prospectus is available for this Portfolio and the Portfolio is not insured by the Federal Deposit Insurance Corporation.
AllianceBernstein® and the AB logo are registered trademarks and service marks used by permission of the owner, AllianceBernstein L.P.©2012 AllianceBernstein L.P. www.alliancebernstein.com
3Q 9/30/12
CALP457—0040-0912
CalPERS International Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Objective The strategic objective of the CalPERS International Index Fund (the
Fund) is to obtain broad international equity exposure by closely
tracking the designated benchmark index, the Financial Times All World
Developed Market ex-US Index. There is no guarantee that the Fund
will achieve its investment objective.
Strategy The Fund is designed in a manner that is consistent with achieving the
stated performance objective. The performance of the Fund is
measured against FTSE Developed World ex US Index, which serves
as the benchmark. This shall necessitate a broadly diversified portfolio
managed in a passive index approach with risk characteristics closely
resembling the benchmark index. The portfolio normally holds the
roughly 1300 securities in the Index. The index includes only
developed market countries outside the U.S. Emerging market
countries are not held. Since holding the exact number of shares in the
benchmark can be expensive and cause constant rebalancing, an
optimized index approach may be used to create a portfolio that closely
resembles the benchmark characteristics. (See Additional Disclosures
to learn more about the Fund’s benchmark.)
Consider Investing if: You are a long-term investor who is interested in investing in the
international stock market and is moderately aggressive or seeking long-
term growth through capital appreciation. You should carefully consider
the investment objective, risks and expenses of the Fund before
investing. As always, you should consult with your financial
representative to determine whether an investment fund option is
appropriate for you.
Portfolio Manager Information: Since the inception of the Public Employees’ Retirement Fund in the
1930s, investments by CalPERS have provided income (in the form of
interest, dividends, and capital gains) to meet the retirement and health
needs of its members. The Fund has been managed internally by
CalPERS Investment Office staff for CalPERS Supplemental Income
Plans (SIP) since June 2007.
Price The unit value of the Fund changes daily, based upon the market value
of the underlying securities. Just as prices in individual securities
fluctuate, the Fund’s unit value changes with market conditions.
What You Own You own units of the Fund’s portfolio that invests in stock of mid and
large capitalization international corporations. You do not have direct
ownership of the securities in the portfolio.
Prospectus Information The CalPERS International Index Fund consists of assets managed by
CalPERS, specifically for CalPERS Plans. Because it is not a mutual
fund, a prospectus is not available. This summary is designed to provide
descriptive information. Please read it carefully before you invest. For
more detailed information about the Fund, you may contact CalPERS at
(800) 696-3907.
Important Facts
Fees The annual asset management and administrative fee of the Fund is
0.40%. Fees are netted out of the Fund’s performance daily. The
CalPERS Board of Administration annually reviews the fees and
operating expenses, and changes may be made if appropriate.
Performance as of September 30, 2012
Past performance does not indicate future results.
Portfolio
Net Return
Portfolio Gross Return
Benchmark
FTSE Developed
World ex US Index
3 Months 7.63% 7.73% 7.68%
1 Year 14.41% 14.81% 14.64%
3 Years 2.61% 2.98% 2.99%
5 Years -4.72% -4.35% -4.16%
Since Inception under SIP(6/1/07)
-3.86% -3.49% -3.32%
Top 10 Holdings as of September 30, 2012
Nestle S.A. 1.71%
Samsung Electronics Co. Ltd. 1.38%
HSBC Holdings PLC 1.31%
Novartis AG 1.24%
Vodafone Group PLC 1.09%
BP PLC 1.04%
Roche Holding AG 1.02%
Royal Dutch Shell PLC (CL A) 1.00%
GlaxoSmithKline PLC .90%
Sanofi S.A. .87%
* Fees of 0.40% have been deducted for investment management and administrative expenses. Performance data shown represents past performance and is no guarantee of future results. The investment return and principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data shown above. For current performance information, including performance to the most recent month-end, please visit our website at https://calpers.ingplans.com
CalPERS International Index Fund
SUPPLEMENTAL INCOME PLANS
SEPTEMBER 30, 2012
Information Accessibility Since the Fund is not a mutual fund, information is not available from a
newspaper source. The SIP record keeper will provide you access to
your account information online by visiting the website at
https://calpers.ingplans.com and/or by calling the Plan Information Line
at (800) 260-0659.
Expenses Expenses are an important aspect of investing. To pay for the
administration and management of a fund, each investor is charged a
fee, which is calculated as a percentage of the amount the investor has
in the fund. Even if the fund loses money during a period, the fee is still
charged. Although an annual fee may seem relatively small, its effect on
performance over time may be substantial. However, fees and expenses
are only one of the several factors that participant should consider when
making investment decisions.
Fund Assets As of September 30, 2012, the total assets under management are
$33,413,610,945.
Additional Disclosures
Frequent Trading Policy CalPERS has a frequent trading policy to secure the investment
performance of the Supplemental Income 457 Plan funds for the benefit
of all investing in the funds. As the funds are designed to achieve
participants’ long-term retirement income goals, short-term trading will be
limited. Multiple round trip trades into and out of a fund may be subject
to these restrictions. For more information on the Supplemental Income
Plans’ Excessive Short-term Trading restrictions, please see the
Supplemental Income Plans Policy at:
www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml
About the Fund’s Benchmark The FTSE All-World Developed Market ex-US Index serves as the
benchmark. You may not invest directly in this index. The index
comprises Large (83%) and Mid (17%) cap stocks providing coverage of
Developed Markets excluding the US. The index is derived from the
FTSE Global Equity Index Series (GEIS), which covers 98% of the
world’s investable market capitalization. The Index is designed to track
the performance of the largest developed market equities (excluding the
US), selected based on the following four fundamental measures of firm
size: book value, income, sales and dividends. The 1000 equities with
the highest fundamental strength are weighted according to their
fundamental scores.
A Note About the Fund’s Risk Investing in this Fund involves a number of risks. Foreign securities are
subject to the same market risks as US securities, however, foreign
securities involve the additional risk of loss due to political, economic,
legal, regulatory, operational uncertainties, differing accounting and
financial reporting standards, limited availability of information and
currency conversion and pricing factors affecting investment in the
securities of foreign businesses or governments. An investor in the Fund
should anticipate that the value of their shares will increase or decrease
in value more or less in correlation with increases and decreases in the
value of the Index. The investment return and principal value of an
investment in FTSE Index will fluctuate so that shares, when sold, may
be worth more or less than their original cost. The Index may include
small and medium-sized companies. Investing in securities of these
companies involves greater risk than is customarily associated with
investing in more established companies. These stocks may have
returns that vary, sometimes significantly, from the overall stock market.
Often smaller and medium capitalization companies and the industries in
which they are focused are still evolving, and while this may offer better
growth potential than larger, more established companies, it may also
make them more sensitive to changing market conditions.
Risk Level
Low Medium High
Sector Weighting as of September 30, 2012
Finance 24.07%
Consumer Non-Durables 8.56%
Health Technology 8.33%
Energy Minerals 8.24%
Producer Manufacturing 6.94%
Non-Energy Minerals 6.35%
Consumer Durables 4.80%
Electronic Technology 4.57%
Communications 4.51%
Process Industries 4.04%
Country Weighting: All countries not included and total will not equal 100%
United Kingdom 18.01%
Japan 15.91%
Canada 9.13%
France 8.01%
Australia 7.74%
Switzerland 7.28%
Germany 7.13%
South Korea 5.17%
Hong Kong 3.66%
Sweden 2.68%
Spain 2.47%
Netherlands 2.24%
Italy 2.00%
Dedicated CalPERS 457 website: https://calpers.ingplans.com | Customer Call Center: 800.260.0659
CalPERS Supplemental Income Plans - 457 Plan
Portfolio factsInception date May 9, 2007*
Performance benchmark Russell 1000 Growth Index
Fee schedule 90 basis points
Assets as of September 30, 2012* $45.6 million
Approximate range of holdings 60 - 90
Average cash position 0 - 5%
Top ten security holdings**
Company name % assets
Apple Inc. 12.8%
Google Inc. 3.7%
Coca-Cola Co. 3.7%
QUALCOMM Inc. 3.0%
EMC Corp. 2.5%
Schlumberger Ltd. 2.3%
Monsanto Co. 2.2%
Visa Inc. 2.2%
Home Depot Inc. 2.1%
Amazon.com Inc. 2.1%
Percentage of overall portfolio 36.6%
Cash 0.5%**subject to change
Performance (net of fees)
3Q12 YTD 1 year3 years
(annualized)5 years
(annualized)
Since inception
(annualized)
CalPERS Supplemental Income Plans - 457 Plan 5.41% 13.30% 21.95% 8.76% -2.05% -0.81%
Russell 1000 Growth Index 6.11% 16.80% 29.19% 14.73% 3.24% 3.54% *Net of investment management fees and market weighted. Past performance is no assurance of future results. All returns are calculated and expressed in U.S. Dollars and reflect the reinvestment of dividends and other earnings. Performance inception date of June 1, 2007 per the direction of CalPERS. Actual inception date for the CalPERS Supplemental Income Plans portfolio is May 9, 2007.
third Quarter 2012
Strategy descriptionn A diversified large-cap growth portfolio holding approximately 60 to 90
stocks.
n Buy range - stocks of companies with a market capitalization greater than $3 billion.
Why Turner Large Cap Growth Fund?n Sector and industry focused research: experienced team of accountable investment professionals.
n Style purity: consistent exposure to large cap growth stocks and application of investment strategy.
n Fully invested: minimal cash position.
Lead portfolio managerRobert E. Turner, CFA
n Chairman and chief investment officer
n Co-founded Turner in 1990; covers the technology and telecommunications and producer durables sectors for all of our stock portfolios
n 31 years of investment experience
CalPERS Supplemental Income Plans | third Quarter 2012
Important InformatIon
Past performance is no guarantee of future results. All returns are calculated and expressed in U.S. Dollars and reflect the reinvestment of dividends and other earnings.Characteristics, holdings and sector weighting information are from the CalPERS Supplemental Income Plans, are subject to change, and should not be considered as recommendations. Forward earnings projections are not predictors of stock price or investment performance, and do not represent past performance. There is no guarantee that the forward earnings projections will accurately predict the actual earnings experience of any of the companies involved, and no guarantee that owning securities of companies with relatively high price-to-earnings ratios will cause the portfolio to outperform its benchmark or index. Total fees for the CalPERS Supplemental Income Plans portfolio are 90 basis points. This information is intended only for the residents of the United States and should not be considered a solicitation or an offer to provide any Turner service in any jurisdiction where it would be unlawful to do so under the laws of that jurisdiction.CalPERS has a new frequent trading policy to secure the investment performance of the Supplemental Income 457 Plan funds for the benefit of all investing in the funds. As the funds are designed to achieve participants’ long-term retirement income goals, short-term trading will be limited. Multiple round trip trades into and out of a fund may be subject to these restrictions. For more information on the Supplemental Income Plans’ Excessive Short-term Trading restrictions, please see the Supplemental Income Plans Policy at: http://www.calpers.ca.gov/index.jsp?bc=/investments/policies/other/home.xml.
Turner Investments is a registered service mark of Turner Investment, L.P.
Holdings-based characteristicsCalPERS
SupplementalIncome Plans
Russell 1000 Growth Index
Number of holdings 66 567
Weighted average market capitalization ($ billion) $125.1 $121.6
Weighted median market capitalization ($ billion) $38.2 $52.3
EPS growth 1 year forecast 18.5% 16.6%
P/E ratio - 1 year forecast 15.0x 14.3x
Sources: FactSet, Turner quantitative system
Sector allocationCalPERS
SupplementalIncome Plans
Russell 1000 Growth Index
Consumer discretionary 21.64% 21.86%
Consumer staples 6.69% 10.65%
Energy 5.01% 4.03%
Financial services 8.84% 7.36%
Health care 11.59% 12.19%
Materials and processing 3.29% 4.56%
Producer durables 9.17% 10.35%
Technology 30.67% 25.77%
Utilities 2.60% 3.23%
Cash and equivalents 0.50% 0.00%
Source: FactSet
Monthly returns (gross)Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
2012 CalPERS 6.60% 6.13% 3.53% -0.92% -7.99% 1.08% -0.51% 3.65% 2.45% Russell 1000 Growth 5.97% 4.78% 3.29% -0.15% -6.41% 2.72% 1.34% 2.69% 1.96%2011 CalPERS 2.23% 5.21% -0.45% 2.23% -1.53% -2.09% -0.38% -7.44% -8.95% 10.34% -0.34% -1.91% Russell 1000 Growth 2.54% 3.27% 0.12% 3.35% -1.09% -1.43% -1.00% -5.28% -7.37% 10.97% -0.01% -0.32%2010 CalPERS -6.43% 4.05% 6.82% 1.58% -8.20% -6.31% 6.50% -5.94% 10.59% 3.82% 2.24% 6.21% Russell 1000 Growth -4.36% 3.44% 5.78% 1.12% -7.63% -5.51% 7.13% -4.67% 10.65% 4.78% 1.16% 5.51%2009 CalPERS -4.80% -6.11% 9.85% 10.10% 4.95% -0.18% 8.63% 1.12% 5.22% -2.74% 4.81% 4.52% Russell 1000 Growth -4.81% -7.52% 8.92% 9.60% 4.96% 1.12% 7.10% 2.07% 4.25% -1.35% 6.14% 3.09%2008 CalPERS -12.17% -2.96% -1.43% 4.49% 3.33% -6.79% -4.10% -1.29% -13.24% -17.51% -9.59% 0.53% Russell 1000 Growth -7.80% -1.99% -0.61% 5.25% 3.67% -7.20% -1.90% 1.08% -11.58% -17.61% -7.95% 1.81%2007 CalPERS -0.65% -1.65% 1.14% 7.70% 7.18% -4.04% 1.63% Russell 1000 Growth -1.49% -1.55% 1.59% 4.19% 3.40% -3.68% -0.36%
INTERNATIONAL/GLOBAL I THIRD QUARTER 2012
Performance as of 9/30/2012
PYRAMIS SELECT INTERNATIONAL STRATEGY CalPERS 457 Plan
Past performance is no guarantee of future results. Current performance may be higher or lower than performance stated. *Net performance is shown as of the CalPERS 457 Plan inception date of December 1, 2008 and reflects the deduction of an annual administrative and management fee of .94% from gross performance. Net returns are for illustrative purposes only and do not reflect actual plan expenses. Taxes have not been deducted.
Top Ten Holdings† as of 9/30/2012 Asset Allocation† as of 9/30/2012
(% of Total Net Assets)
Sectors† as of 9/30/2012
†The Top Ten Holdings, Asset Allocation, and Sectors are based on a representative account within the Strategy, and are presented to illustrate examples of securities in which the Strategy may invest, and may not be representative of current or future investments. The figures presented are as of the date shown, do not include the Strategy’s entire investment portfolio and may change at any time.
Equities 94.97% Cash & Other 5.03% Total 100%
OBJECTIVE The principal investment objective of the Pyramis Select International Strategy is to seek long-term growth of capital primarily through investments in foreign securities. The Strategy defines “foreign securities” as securities of companies, wherever organized, which, in the judgment of Pyramis, have their principal business activities outside of the United States. STRATEGY The Strategy may invest in all types of securities (which may be denominated in foreign currencies) including common stock, shares issued by closed-end investment companies, securities convertible into common stock, and depository receipts for these securities; the Strategy may also invest in any type or quality of debt securities. The Strategy does not place any emphasis on dividends or interest income except when income may have a favorable influence on the market value of the security. Although it is permitted to do so, the Strategy currently does not expect to invest a significant part of its assets in securities of U.S. companies. The Strategy expects to invest most of its assets in securities of companies located in developed countries in these general geographic areas: the Americas (other than the United States), the Far East and Pacific Basin, and Western Europe. PRINCIPAL RISKS Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Foreign investments involve greater risk than U.S. investments, including political and economic risks and the risk of currency fluctuations. Unit price, yield, and return will vary.
3 Mo. YTD 1 Year 3 Year 5 Year 10 YearSince
Inception*
Pyramis Select Int'l (Net) 7.62 12.37 16.79 3.51 – – 10.51Pyramis Select Int'l (Gross) 7.88 13.14 17.85 4.33 – – 11.39Calpers FTSE Dev World Ex 7.59 10.78 14.76 2.83 – – 10.90
AVERAGE ANNUAL RET. (%)CUMULATIVE RET. (%)
22.08%
11.60%
11.23%
10.53%
9.08%
8.85%
8.16%
5.14%
4.65%
3.85%
NESTLE SA (REG) 2.73%
VODAFONE GROUP PLC 1.97%
SANOFI 1.85%
BRITISH AMER TOBACCO PLC (UK) 1.55%
ROYAL DUTCH SHELL PLC 1.42%
NOVO-NORDISK AS CL B 1.41%
HSBC HOLDINGS PLC (UK REG) 1.39%
BP PLC 1.32%
AUSTRALIA & NZ BANKING GRP 1.30%
COMMONWEALTH BK OF AUSTRALIA 1.29%
Financials
Consumer Staples
Industrials
Consumer Discretionary
Health Care
Materials
Energy
Telecommunication Services
Information Technology
Utilities
INTERNATIONAL/GLOBAL I THIRD QUARTER 2012
PYRAMIS SELECT INTERNATIONAL STRATEGY CalPERS 457 Plan Pool Information as of 9/30/07
All numbers are un-audited.
Who May Want To Invest – Someone who wants to complement
the performance of U.S. investments with that of investments overseas, which can behave quite differently.
– Someone who is comfortable with the high investment risks and potential rewards involved in investing overseas as well as with the investment risk involved in any growth option, and who understands that market, political, economic, and foreign currency exchange conditions may cause this investment to fluctuate more than a domestic growth investment.
Portfolio Manager (Tenure on Portfolio): César Hernández (7/1989)
The performance of international strategies depends upon currency values, political and regulatory environments, and overall economic factors in the countries in which they invest. Foreign markets, particularly emerging markets, can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market, or economic developments and can perform differently from the U.S. market. The risks are particularly significant for strategies that focus on a single country or region. The business unit of Pyramis Global Advisors (Pyramis) consists of: Pyramis Global Advisors Holdings Corp.; Pyramis Global Advisors Trust Company, a New Hampshire limited purpose trust company (PGATC); Fidelity Management Trust Company, a Massachusetts trust company (FMTC); Pyramis Global Advisors, LLC, a U.S. registered investment adviser (PGA LLC); Pyramis Canada ULC, an Ontario registered investment adviser; Pyramis Global Advisors (UK) Limited, a U.K. research provider; Pyramis Global Advisors (Hong Kong) Limited, a Hong Kong registered investment adviser (Pyramis-HK); and Fidelity Investments Canada ULC (FIC). Investment services are provided by PGATC, FMTC, PGA LLC, Pyramis Canada ULC and/or Pyramis-HK. Past performance is no guarantee of future results. Please contact your service provider for management and administrative fee information. An investment in this Strategy may be risky and may not be suitable for a participant’s goals, objectives and risk tolerance. The value of investments in this Strategy will vary day to day in response to many factors such as adverse issuer, political, regulatory, market or economic developments. Participants should be aware that an investment’s value may be volatile and any investment involves the risk that you may lose money. Investments in this Strategy are not guaranteed by the manager, the plan sponsor, or insured by the FDIC. The Strategy may use futures, options, swaps, and exchange traded funds to enable the pool to remain fully invested, while being able to respond to participant cash flows and to take advantage of changes in interest rates, and other factors affecting value. PGATC has claimed an exemption from registration under the Commodity Futures Trading Commission rules as a commodity pool operator, and is not subject to registration or regulation under the Commodity Exchange Act. All trademarks and service marks included herein belong to FMR LLC or an affiliate, except third-party trademarks and service marks, which belong to their respective owners. Pyramis does not provide legal or tax advice and we encourage you to consult your own lawyer, accountant or other advisor before making an investment.
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