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The Board of Trustees (Board) is authorized to invest and reinvest the Trust Fund (Fund), formulate investment policies, develop investment manager guidelines and objectives, and approve the retention of qualified advisors and investment managers.

The Statement of Investment Policy outlines the Board's responsibility for the investment of the Fund and formulates a portfolio that is broadly diversified among investment managers and across investment classes, to achieve an appropriate balance between risk and return ensuring the security of members’ benefits.

Fund assets should be invested to obtain an appropriate long-term total return consistent with the overriding goal of limiting the risk of a large loss.  Each investment manager has a set of guidelines, which are appropriate for each manager’s mission.  Investment managers have discretion within the constraints of these guidelines and are subject to regular review by the Board.

In February 2009, the Board established a new target asset allocation which seeks to make the promised benefits more secure while lowering the cost of funding those benefits.  As of June 30, 2010, investment allocations were consistent with the policy with the exception of private market investments which will be funded gradually over time.  The target asset allocation is shown below: