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INVESTMENT PRESENTATIONS TO THE
TRS BOARD OF TRUSTEES
April 2012
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TEACHER RETIREMENT SYSTEM OF TEXAS MEETING BOARD OF TRUSTEES AGENDA
April 19, 2012 TRS East Building, 5th Floor, Boardroom
NOTE: The Board may take up any item posted on the agenda during its meeting on Thursday, April 19, 2012, or during the meeting on the following day beginning at the time and place specified on this agenda. The open portions of the April 19-20, 2012 Board meetings are being broadcast over the Internet. Access to the Internet broadcast of the Board meeting is provided on TRS' Web site at www.trs.state.tx.us.
4. Discuss and consider investment matters, including the following items:
A. Performance Review: Fourth Quarterly 2011 – Brady O’Connell and Steve Voss, Hewitt EnnisKnupp
B. Review Quarterly Portfolio Performance and Market Update – Britt Harris
C. Review the report of the Investment Management Committee on its April 19, 2012 meeting – Todd Barth
D. Review the report of the Risk Management Committee on its April 19, 2012 meeting – Eric McDonald
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Tab A
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Performance Review: Fourth Quarter 2011
Teacher Retirement System of TexasApril 2012
Teacher Retirement System of Texas | April 2012 2
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Teacher Retirement System of Texas | April 2012 3
Summary
Market results were positive during the quarter but mixed for the year.
During the fourth quarter, the risk appetite returned to the capital markets driven by better than expected economic data in the U.S.
TRS Total Fund gained 3.8% for the quarter but modestly underperformed the benchmark – Underperformance during 2011 relative to the benchmark driven largely by the challenging third
quarter results.
Sources of underperformance during the quarter– Real Return:
• Real Assets– Global Equity:
• U.S. Small Cap• Non-U.S. Developed and Emerging Markets
– Stable Value:• Other Absolute Return (opportunistic credit investments)
– Asset movements towards new policy allocation, which took effect in October 1, 2011
Teacher Retirement System of Texas | April 2012 4
2.8-0.93.5-3.7-0.1HFRI Fund of Funds Conservative Index
3.3-0.73.6-5.6-0.3HFRI Fund of Funds Composite Index
Fourth Quarter One Year Three Years Five Years Ten Years
Global Equity:MSCI USA Standard 11.7% 2.0% 14.4% -0.1% 3.0%
MSCI USA Small Cap 14.7 -3.0 20.1 1.5 6.4MSCI EAFE + Canada Index 3.5 -12.2 8.5 -4.1 5.1
MSCI Emerging Markets Index 4.4 -18.4 20.1 2.4 13.9
State Street Private Equity Index (qtr lagged) -6.0 11.6 4.2 6.6 9.1
Global Equity Policy Benchmark 4.2 -5.1 13.9 -- --Stable Value:
Barclays Capital Long Treasury Index 1.9% 29.9% 7.4% 11.0% 9.0%
3 Month LIBOR + 2% 0.6 2.4 2.5 3.9 4.3
90 Day US Treasury Bill 0.0 0.1 0.1 1.5 2.0Stable Value Policy Benchmark 1.4 22.3 6.8 -- --
Real Return:Barclays Capital US Treasury TIPS Index 2.7% 13.6% 10.4% 8.0% 7.6%
NCREIF ODCE (qtr lagged) 3.3 17.2 -7.2 -0.9 4.0
Goldman Sachs Commodities Index 9.0 -1.2 6.9 -2.8 5.6MSCI US REIT 15.3 8.7 21.6 -2.1 9.8
Real Return Policy Benchmark 4.4 12.9 7.4 -- --TRS Policy Benchmark 3.9% 3.9% 11.7% 2.5% 5.5%
1. Market Summary – Fourth Quarter 2011
Teacher Retirement System of Texas | April 2012 5
2. Market Value Change
Change in Market Value ( $Millions )From October 1, 2011 To December 31, 2011
$101,106.5
-$910.4
$3,846.8
$104,042.9
-20000.0
0.0
20000.0
40000.0
60000.0
80000.0
100000.0
120000.0
Beginning Market Value Net Additions / Withdrawals Investment Earnings Ending Market Value
Mill
ions
($)
Teacher Retirement System of Texas | April 2012 6
3. Asset Allocation Detail
Market Value ($ in millions)
as of 12/31/2011Policy Target
RelativeAllocation
toPolicy Target Ranges($) (%)
Total Fund 104,043 100% 100% -- --
U.S. Large $20,629 19.8% 18% +1.8% 13-23%
U.S. Small $941 0.9% 2% -1.1% 0-7%
Non-U.S. Developed $15,403 14.8% 15% -0.2% 10-20%
Emerging Markets $10,490 10.1% 10% +0.1% 5-15%
Directional Hedge Funds $5,204 5.0% 5% 0.0% 0-10%
Private Equity $11,548 11.1% 12% -0.9% 7-17%
Global Equity $64,215 61.7% 62% -0.3% 55-69%
Long Treasuries $12,417 11.9% 13% -1.1% 0-20%
Stable Value Hedge Funds $3,385 3.3% 4% -0.7% 0-10%
Absolute Return (including OAR) $2,294 2.2% 0% +2.2% 0-20%
Cash $1,134 1.1% 1% +0.1% 0-5%
Stable Value $19,230 18.5% 18% +0.5% 13-23%
TIPS $6,479 6.2% 5% +1.2% 0-10%
Real Assets $11,217 10.8% 13% -2.2% 5-20%
REITS $2,096 2.0% 2% 0.0% 0-5%
Commodities $806 0.8% 0% +0.8% 0-5%
Real Return $20,598 19.8% 20% -0.2% 15-25%
Note: Actual allocations above are based upon Account Level information
Teacher Retirement System of Texas | April 2012 7
4. Total TRS Performance Ending 12/31/2011
Investment ResultsAs of 12/31/2011
5.49%
2.25%
12.00%
1.85%
3.79%3.91%
5.45%
2.45%
11.74%
3.87%
-2.06%
0.26%
-0.20%
-0.08% 0.04%
-5.0%
-3.0%
-1.0%
1.0%
3.0%
5.0%
7.0%
9.0%
11.0%
13.0%
15.0%
Quarter 1-Year 3-Years 5-Years 10-Years
Total Fund Policy Index Difference
Teacher Retirement System of Texas | April 2012 8
5. Total Fund Attribution - Quarter Ending 12/31/2011
Asset ClassAllocation Effect
(in bps)
U.S. Large Cap 20
U.S. Small Cap 4
Non-U.S. Developed -5
Emerging Markets -3
Directional Hedge Funds 12
Private Equity 8
Long Treasuries 7
Stable Value Hedge Funds 5
Cash Equivalents -10
Other Absolute Return -8
U.S. TIPS 1
Real Assets 0
REITS -3
Commodities 11
Total Allocation Effect 39
Teacher Retirement System of Texas | April 2012 9
5. Total Fund Attribution – One Year Ending 12/31/2011
Asset Class
Allocation Effect
(in bps)
U.S. Large Cap 29
U.S. Small Cap -8
Non-U.S. Developed 43
Emerging Markets -96
Directional Hedge Funds 12
Private Equity 1
Long Treasuries -85
Stable Value Hedge Funds 6
Cash Equivalents -10
Other Absolute Return -6
U.S. TIPS -6
Real Assets 19
REITS 3
Commodities 0
Total Allocation Effect -98
Teacher Retirement System of Texas | April 2012 10
6. Global Equity: Performance Summary Ending 12/31/2011
Fourth Quarter
Non-U.S. Developed
MSCI EAFE + Canada
Difference
Non-U.S. EquityNon-U.S. Benchmark
Difference
U.S. Equity
U.S. Benchmark
Difference
Difference
Small Cap Benchmark
U.S. Small Cap
0.0Difference
Large Cap Benchmark
U.S. Large Cap
Difference
MSCI Emerging Markets
3.4%
3.5
-0.1
3.7%
3.9
-0.2
11.8%
12.0
-0.2
-1.3
14.7
13.4%
11.7
11.7%
-0.4
4.4
4.0%Emerging Markets
4.6%Total Global Equity
4.2Global Equity Benchmark
One Year
-11.0%
-12.2
+1.2
-15.0%
-14.6
-0.4
-1.0%
0.7
-1.7
+0.1
-3.0
-2.9%
-1.8
2.0
0.2%
-1.1
-18.4
-19.5%
-6.2%
-5.1
-1.1+0.4Difference14.1%
14.7
-0.6
14.2%
8.7%
8.5
+0.2
12.8%
13.1
-0.3
-0.6
16.9
16.3%
0.0
14.2
-0.7
20.1
19.4%
12.1%13.9
-1.8
Three Years
Teacher Retirement System of Texas | April 2012 11
6. Global Equity (cont’d): Performance Summary Ending 12/31/2011
Fourth Quarter One Year Three YearsDirectional Hedge Funds 2.9% -- --HFRI Fund of Funds Composite Index -0.3 -- --
Difference +3.2 -- --
Total Public Equity 6.8% -9.0% 12.5%
Public Equity Benchmark 7.5 -7.5 12.9
Difference -0.7 -1.5 -0.4
Total Private Equity -4.5% 11.2% 6.3%
Private Equity Benchmark -6.0 11.6 19.9
Difference +1.5 -0.4 -13.6
Teacher Retirement System of Texas | April 2012 12
7. Stable Value: Performance Summary Ending 12/31/2011
Fourth Quarter One Year Three Years
Total Stable Value 1.4% 17.0% 12.7%
Total Stable Value Benchmark 1.4 22.3 6.8
Difference 0.0 -5.3 +5.9
Long Treasuries 2.0% 30.8% 8.8%
Treasury Benchmark 1.9 29.9 7.4
Difference +0.1 +0.9 +1.4
Stable Value Hedge Funds 0.0% -1.6% 6.3%
Hedge Funds Benchmark -0.1 1.7 2.2
Difference +0.1 -3.3 +4.1
Other Absolute Return -0.5% -3.5% 15.3%
Other Absolute Return Benchmark 0.6 2.4 2.5
Difference -1.1 -5.9 +12.8
Cash Equivalents 0.3% 0.4% -0.7%
Cash Benchmark 0.0 0.1 0.1
Difference +0.3 +0.3 -0.8
Note: Performance of Cash Equivalents is shown net of fees paid to TRS Strategic Partners
Teacher Retirement System of Texas | April 2012 13
8. Real Return: Performance Summary Ending 12/31/2011
Fourth Quarter One Year Three Year
Total Real Return 3.7% 11.1% 7.9%
Real Return Benchmark 4.4 12.9 7.4
Difference -0.7 -1.8 +0.5
TIPS 2.5% 13.6% 11.1%
U.S. TIPS Benchmark 2.7 13.6 10.9
Difference -0.2 0.0 +0.2
Real Assets 1.8% 12.7% -6.1%
Real Asset Benchmark 3.3 17.2 -3.7
Difference -1.5 -4.5 -2.4
REITS 15.4% 8.8% 22.9%
REITS Benchmark 15.3 8.7 21.3
Difference +0.1 +0.1 +1.6
Commodities 2.5% -4.9% 8.4%
Commodities Benchmark 9.0 -1.2 6.9
Difference -6.5 -3.7 +1.5
Teacher Retirement System of Texas | April 2012 14
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Appendix – Supplemental Reporting
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Teacher Retirement System of Texas | April 2012 17
Historical Excess Performance
Quarterly and Cumulative Excess Performance
Total Fund vs. Total Fund Benchmark
Teacher Retirement System of Texas | April 2012 18
TRS Asset Growth
Total Fund Historical Growth (September 1997 - December 2011)
0
20
40
60
80
100
120
140
Sep-97 Sep-99 Sep-01 Sep-03 Sep-05 Sep-07 Sep-09 Sep-11
Mar
ket V
alue
(Billi
ons)
$104.0
Teacher Retirement System of Texas | April 2012 19
External Manager Program: Public Equity Performance as of 12/31/2011Allocation
($ in billions) Fourth Quarter One Year Three Years
EP Total Global Equity $25.8 6.2% -10.0% 15.5%
EP Global Equity Benchmark -- 7.1 -8.8 15.7
Difference -- -0.9 -1.2 -0.2
EP Total U.S. Large Cap $8.6 11.7% 0.9% 21.0%
EP Large Cap Benchmark -- 11.7 2.0 11.8
Difference -- 0.0 -1.1 +9.2
EP Total U.S. Small Cap $1.2 13.1% -4.2% --
EP Small Cap Benchmark -- 14.6 -3.0 --
Difference -- -1.5 -1.2 --
EP Total U.S. $9.8 11.9% 0.3% 21.0%
EP U.S. Benchmark -- 12.0 1.5 11.8
Difference -- -0.1 -1.2 +9.2
EP Total Non-U.S. Developed $4.0 2.6% -11.8% 6.9%
MSCI EAFE + Canada Index -- 3.5 -12.2 8.5
Difference -- -0.9 +0.4 -1.6
EP Total Emerging Markets $6.0 3.2% -20.4% 19.8%
MSCI Emerging Markets Index -- 4.4 -18.4 20.1
Difference -- -1.2 -2.0 -0.3
EP Total Non-U.S. $10.0 2.9% -17.1% 13.7%
EP Non-U.S. Benchmark -- 4.0 -15.7 15.0
Difference -- -1.1 -1.4 -1.3
Teacher Retirement System of Texas | April 2012 20
External Manager Program: Public Equity Performance as of 12/31/2011 (cont’d)
Allocation ($ in billions) Fourth Quarter One Year Three Years
EP Total World Equity $3.3 4.2% -8.4% --
EP World Equity Benchmark -- 7.2 -7.3 --
Difference -- -3.0 -1.1 --
EP Total Directional Hedge Funds $2.7 0.8% -- --
HFRI Fund of Funds Composite Index -- -0.3 -- --
Difference -- +1.1 -- --
Teacher Retirement System of Texas | April 2012 21
Strategic Partnership Program: Performance Summary Ending 12/31/2011
During the quarter the Program modestly underperformed its benchmarkOver the trailing three-year period, the Program exceeded its benchmark by 1.0 percentage point– All four managers outperformed the SPN benchmark over the three-year period, with Neuberger
Berman and J.P. Morgan generating the most value– The recently hired strategic partner, Barclays Capital, slightly outperformed its benchmark during the
fourth quarter
Allocation ($ in billions)
FourthQuarter
One Year
Three Years
Strategic Partnership Program (SPN) $5.0 6.6% 0.5% 14.3%
Strategic Partnership Program Benchmark -- 6.7 2.4 13.3
Difference -- -0.1 -1.9 +1.0
Blackrock $1.1 6.2% 0.5% 13.6%
J.P. Morgan $1.1 7.6% -1.3% 14.8%
Neuberger Berman $1.2 5.9% -0.1% 15.2%
Morgan Stanley $1.1 6.8% 2.6% 13.6%
Barclays Capital $0.5 6.9% -- --
Teacher Retirement System of Texas | April 2012 22
BenchmarksTotal Fund Performance Benchmark – 18% MSCI US Standard, 2% MSCI US Small Cap, 10% MSCI Emerging Markets, 15% MSCI EAFE plus Canada, 5% HFRI FoF Composite Index, 12% State Street Private Equity (1 qtr lagged), 13% BC Long Term Treasury, 4% HFRI FoF Conservative Index, 1% Citigroup 3 Mo T-Bill, 5% BC US TIPS, 2% MSCI US REIT Index, 13% NCREIF ODCE (1 qtr lagged)
Global Equity Benchmark– 24% MSCI EAFE plus Canada, 29% MSCI US Standard, 3% MSCI US Small Cap,16% MSCI Emerging markets index, 8% HFRI FoF Composite Index, and 19% State Street Private Equity (1 qtr lagged)US Large Cap Benchmark - MSCI US Standard IndexUS Small Cap Benchmark - MSCI US Small Cap IndexEmerging Markets Benchmark – MSCI Emerging Markets Non-US Developed Benchmark– MSCI EAFE plus CanadaDirectional Hedge Funds – HFRI Fund of Funds (FoF) Composite IndexPrivate Equity Benchmark - State Street Private Equity (1 qtr lagged)
Stable Value Benchmark – 22% HFRI FoF Conservative Index, 72% BC Long Term Treasury, and 6% Citigroup 3 mo T-Bill.US Treasuries Benchmark – Barclays Capital (BC) Long Term TreasuryStable Value Hedge Funds – HFRI Fund of Funds (FoF) Conservative IndexOther Absolute Return Benchmark - 3 Mo LIBOR + 2%Cash Benchmark - Citigroup 3 Mo T-Bill
Real Return Benchmark – 25% BC US TIPS, 65% NCREIF ODCE, and 10% MSCI US REIT IndexUS TIPS Benchmark - BC US TIPS IndexReal Assets Benchmark –NCREIF ODCE (1qtr lagged) REITS Benchmark – MSCI US REIT IndexCommodities Benchmark - Goldman Sachs Commodity Index
Note: Returns and market values (based on account level) reported are provided by State Street. Net additions/withdrawals are reported on a gross (adjusted for expenses) total fund level as provided by State Street. All rates of return for time periodsgreater than one year are annualized. The excess returns shown in this presentation may differ from State Street statements dueentirely to rounding. These differences are generally within a few basis points and are not material.
Teacher Retirement System of Texas | April 2012 23
Description of Performance Attribution
A measure of the source of the deviation of a fund's performance from that of its policy benchmark. Each bar on the attribution graph represents the contribution made by the asset class to the total difference in performance. A positive value for a component indicates a positive contribution to the aggregate relative performance. A negative value indicates a detrimental impact. The magnitude of each component's contribution is a function of (1) the performance of the component relative to its benchmark, and (2) the weight (beginning of period) of the component in the aggregate. The individual Asset Class effect, also called Selection Effect, is calculated as Actual Weight of Asset Class x (Actual Asset Class Return – Asset Class Benchmark Return)The bar labeled Allocation Effect illustrates the effect that a Total Fund's asset allocation has on its relative performance. Allocation Effect calculation = (Asset Class Benchmark Return –Total Benchmark Return) x (Actual Weight of Asset Class – Target Policy Weight of Asset Class). The bar labeled Cash Flow Effect describes the impact of asset movements on the Total Fund results. Cash Flow Effect calculation = (Total Fund Actual Return – Total Fund Policy Return) – Current Selection Effect – Current Allocation EffectThe bar labeled Benchmark Effect results from the weighted average return of the asset classes' benchmarks being different from the Total Funds’ policy benchmark return. Benchmark Effect calculation = Total Fund Policy Return – (Asset Class Benchmark Return x Target Policy Weight of Asset Class)Cumulative EffectCumulative Effect calculation = Current Effect t *(1+Cumulative Total Fund Actual Return t-1) +Cumulative Effect t-1*(1+Total Fund Benchmark Return t)
Teacher Retirement System of Texas | April 2012 24
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Tab BTab B
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blank.
Britt Harris
Chief Investment Officer
April 2012
Quarterly Portfolio Performance Review and Market Update
Trust Results
Current Conditions
Long-Term Outlook
Appendix
2
Agenda
Overview
Current Conditions
Long-Term Outlook
Appendix
1. ECONOMIC CONDITIONS
• Global economic conditions improving but still fragile
• Markets dominated by political issues in 2011
• Corporate profits are at all-time highs
2. RECENT FINANCIAL MARKET PERFORMANCE
• Disconnect continues between GDP growth and corporate profit
• Significant benefits continue from new diversification
3. TRUST PERFORMANCE
Total Return Value Added Peer Comparison
One Year 1.9% -2.1% Top 32%
Two Year 8.1% -0.3% Top 15%
Three Year 12.0% 0.3% Top 13%
4. TRUST VALUE
Ending Value $104.0 billion
4th Quarter Investment Return $ 3.8 billion
One-Year Investment Return $ 2.0 billion
Three-Year Investment Return $ 31.7 billion
3
Executive Summary – TRS Investment DivisionAs of December 31, 2011
Source: State Street Bank
5. TRUST RISK POSITIONS
Underweight Neutral Overweight
Real Assets -2.2% Public Equity Credit/OAR +2.1%
Treasuries -1.1% REITs TIPS +1.3%
Private Equity -0.9% Cash Commodities +1.2%
Hedge Funds -0.7%
6. ECONOMIC PROJECTIONS
Q4 2011Actual
2012Estimated
Real GDP 3.0% 2.2%
CPI 3.3% 2.1%
Nominal GDP 6.3% 4.3%
10-Year Rate 1.9% 2.5%
Discount Rate 0.3% 0.3%
EUR/USD 1.3 1.3
Unemployment Rate 8.7% 8.3%
7. DIVERSIFICATION PREMIUM REQUIREMENT (10 Year)*
Historical Average 1.7%
Current 6.1%
*Excess return over 10-Year treasury bond yield needed to achieve 8%
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
4
Relative Market Returns MatrixAs of December 31, 2011
Private Equity and Real Estate returns are quarter lagged, JPY and EUR are expressed in their purchase power in USDAll Domestic Equities modeled by Russell Indexes, all International Equities and REITs modeled by MSCI Indexes
Source: BloombergOverviewCurrent
ConditionsLong-Term
OutlookAppendix
Annual Annualized
Rank Quarter 1 Year 2010 2009 2008 2007 2006 5 Year 10 Year 20 Year
1 US Small Long Treasury Gold EM Equity Long Treasury EM Equity REITs Gold Gold Private Equity
15.5% 29.9% 29.5% 78.5% 24.0% 39.8% 35.9% 17.4% 18.8% 17.4%
2 REITs Real Estate REITs High Yield Japanese Yen Commodities EM Equity Japanese Yen EM Equity REITs
15.3% 17.2% 28.5% 58.2% 23.3% 32.7% 32.6% 8.0% 14.1% 10.7%
3 US Value US I/L US Small US Growth Gold Gold Private Equity EM Equity REITs US Value
13.1% 13.6% 26.9% 37.2% 5.8% 31.0% 30.8% 6.7% 10.2% 8.9%
4 US Large Private Equity EM Equity EAFE + CAN Real Estate Private Equity EAFE + CAN High Yield Private Equity Long Treasury
11.8% 11.6% 18.9% 33.7% 2.3% 21.1% 26.9% 6.5% 10.1% 8.7%
5 US Growth Gold US Growth REITs 90 Day Trsy Real Estate Gold Long Treasury Long Treasury US Small
10.6% 10.1% 16.7% 28.6% 1.8% 17.1% 23.2% 5.3% 9.0% 8.5%
6 Commodities REITs Private Equity US Large US I/L US Growth US Value US I/L High Yield EM Equity
9.0% 8.7% 16.2% 28.4% -2.4% 11.8% 22.2% 5.2% 8.9% 8.4%
7 High Yield Japanese Yen US Large US Small Euro US I/L US Small Private Equity US I/L High Yield
6.5% 5.5% 16.1% 27.2% -4.2% 11.6% 18.4% 3.1% 8.8% 8.2%
8 EM Equity High Yield US Value Gold Private Equity EAFE + CAN Real Estate US Growth Commodities US Large
4.4% 5.0% 15.5% 24.4% -25.1% 11.6% 16.3% 2.0% 5.6% 8.0%
9 EAFE + CAN US Growth High Yield US Value High Yield Euro US Large 90 Day Trsy US Small Gold
3.5% 2.6% 15.1% 19.7% -26.2% 10.5% 15.5% 1.4% 5.6% 7.7%
10 Real Estate US Large Japanese Yen Commodities US Small Long Treasury High Yield US Small Japanese Yen US Growth
3.3% 1.5% 14.7% 13.5% -33.8% 9.8% 11.8% 1.0% 5.5% 6.6%
11 US I/L US Value Long Treasury US I/L US Value Japanese Yen Euro Euro EAFE + CAN Real Estate
2.7% 0.4% 9.4% 11.4% -36.8% 6.5% 11.4% 0.3% 5.1% 5.8%
12 Long Treasury 90 Day Trsy Commodities Private Equity US Large US Large US Growth US Large Real Estate US I/L
1.9% 0.1% 9.0% 10.5% -37.6% 5.8% 9.1% -0.3% 4.9% 5.1%
13 Japanese Yen Commodities EAFE + CAN Euro REITs 90 Day Trsy 90 Day Trsy EAFE + CAN US Value EAFE + CAN
0.2% -1.2% 8.9% 2.5% -38.0% 4.8% 4.8% -1.7% 3.9% 5.0%
14 90 Day Trsy Euro US I/L 90 Day Trsy US Growth High Yield Long Treasury Commodities Euro Commodities
0.0% -3.2% 6.3% 0.1% -38.4% 1.9% 1.9% -2.6% 3.8% 3.9%
15 Euro US Small Real Estate Japanese Yen EAFE + CAN US Value US I/L US Value US Large 90 Day Trsy
-3.2% -4.2% 6.0% -2.6% -43.6% -0.2% 0.4% -2.7% 3.3% 3.3%
16 Gold EAFE + CAN 90 Day Trsy Long Treasury Commodities US Small Japanese Yen REITs US Growth Japanese Yen
-3.7% -12.2% 0.1% -12.9% -46.5% -1.6% -1.1% -3.1% 2.6% 2.5%
17 Private Equity EM Equity Euro Real Estate EM Equity REITs Commodities Real Estate 90 Day Trsy Euro
-6.0% -18.4% -6.5% -35.7% -53.3% -16.8% -15.1% -4.0% 1.9% -0.3%
5
Overview of Investment ResultsAs of December 31, 2011
Q4 11 Return 1.4% 4.6% 3.7% 3.8%
1 Year Return 17.0% -6.2% 11.1% 1.9%
Ending Value $20.1B $62.9B $21.0B $104.0B
Period Stable Value Global Equity Real Return Total Trust
Real Return20%
Policy weights:
5% - TIPS2% - REITS
13% - Real Estate/Real Assets
Stable Value18%
Policy weights:
13% - Long Treasuries4% - Hedge Funds
1% - Cash
Global Equity62%
Policy weights:
18% - US Large Cap2% - US Small Cap
15% - Non- US Developed10% - Emerging Market Equities
5% - Directional Hedge Funds12% - Private Equity
Source: State Street Bank
Trust Value over $100 Billion Modest year (up 1.9%) 32nd percentile versus peer funds
Q4 up 3.8% 3 year return: 12% and likely to rise Economic recovery complete; expansion phase pending
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
6
One Year Summary of Portfolio PerformanceOne Year Ending December 31, 2011
Global Equity60%
22% - US Large Cap5% - US Small Cap
15% - Non- US Developed10% - Emerging Market Equities
8% - Private Equity
Source: State Street Bank
AssetsValue($B)
As of 12/31/11
Total Return
ExcessReturn
Value Added
NOTES% of Fund
+/-weight
ByAllocation
BySelection Total
Public Equity* 51.4 49.4 -0.6% -9.0% -1.5% -0.4% -0.1% -0.5% Struggled (European debt crisis, U.S. downgrade)
Private Equity 11.5 11.1 -0.9% 11.2% -0.4% 0.0% -0.1% -0.1% Stronger returns for Private Equity
Global Equity 62.9 60.5 -1.5% -6.2% -1.0% -0.4% -0.2% -0.6%
Long-Term Treasuries 12.4 11.9 -1.1% 30.8% 0.8% -1.0% 0.1% -0.9% Treasuries had a phenomenal year
Stable Value Hedge Funds 3.4 3.3 -0.7% -1.6% -3.3% 0.1% -0.1% 0.0% Outperformed Public Equity by 7.4% in down market
Credit/OAR 2.2 2.1 2.1% -3.5% -5.9% -0.2% 0.0% -0.2% Primarily RMBS
Cash 2.1 2.0 1.0% 0.4% 0.3% -0.1% 0.0% -0.1%
Stable Value 20.1 19.3 1.3% 17.0% -5.3% -1.2% 0.0% -1.2%
TIPS 6.5 6.3 1.3% 13.6% 0.1% -0.1% 0.0% -0.1%
Commodities 1.2 1.2 1.2% -4.9% -3.7% -0.1% 0.1% 0.0%
REITs 2.1 2.0 0.0% 8.8% 0.1% 0.0% 0.0% 0.0% Advanced despite public market weakness
Real Assets 11.2 10.7 -2.3% 12.7% -4.5% 0.2% -0.4% -0.2% Strong returns from Real Assets
Real Return 21.0 20.2 0.2% 11.1% -1.8% 0.0% -0.3% -0.3%
Total Trust 104.0 100% 0.0% 1.9% -2.1% -1.6% -0.5% -2.1%
Public Assets 81.3 78.2 3.2% -0.1% -2.1% -1.8% 0.0% -1.8% Asset allocation challenging in Q311
Private Assets 22.7 21.8 -3.2% 12.1% -2.9% 0.2% -0.5% -0.3% Private Markets provided diversification
Total Trust $ 104.0 100% 0.0% 1.9% -2.1% -1.6% -0.5% -2.1%
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
* Public Equity includes Directional Hedge Funds
Source: Trust Universe Comparison Services 7
TUCS Comparisons for Public TrustsGreater Than $10 Billion
TRS IMD Competitive RankPeriods ending December 31, 2011
0
25
50
75
100
1 Year32nd
2 Year15th
3 Year13th
4 Year30th
5 Year25th
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
8
Growth of TrustAs of December 31, 2011 (in millions)
Global Equity60%
22% - US Large Cap5% - US Small Cap
15% - Non- US Developed10% - Emerging Market Equities
8% - Private Equity
Source: TRS Accounting Division
1 Year 3 Years 10 YearsStarting Value $105,344 $80,504 $74,442
Less:Benefit Payments 7,467 20,688 59,014
Withdrawals 368 897 2,590Other Expenses 93 246 583
Total Reductions 7,928 21,830 62,187
Add:State Contributions 1,789 5,393 14,704
Employee Contributions 2,230 7,248 21,126Other Additions 574 1,026 2,038
Total Contributions 4,594 13,667 37,868
Investment Return 2,033 31,701 48,920
Ending Value $104,043 $104,043 $104,043
Ending Fund Value of $104.0 Billion
$ 7.9 Billion in Payouts
$ 4.6 Billion in Contributions
$ 2.0 Billion in Investment Returns
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Current Conditions
9
10
Source: Data from Bureau of Labor Statistics (CPI) and Bureau of Economic Analysis (GDP). Graph depicts year-over-year quarterly observations from 1948 to date. Market returns based on 2011 TRS policy, dependent on QoQ inflation and GDP prevailing since 1990
Real Return RegimeHigh CPI, Low GDP
15.1% of observationsAverage Inflation: 8.3%
Global Equity: +5.7%Stable Value: +4.3%
Real Return: +13.5%
Stable Value RegimeStagnant GDP & Low CPI
18.9% of Observations
Average Inflation: 1.0%
Global Equity: -7.0%
Stable Value: +14.2%Real Return: +0.7%
Global Equity RegimeFavorable GDP/CPI66% of observations
Average Inflation: 3.0%
Global Equity: +15.4%Stable Value: +7.1%
Real Return: +8.3%
Portfolio Diversification in Different Market Conditions
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
11
Current GDP/CPI Regime for USGlobal Equity (Box 5) as of December 2011
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
12
Current GDP/CPI Regimeas of December 2011
China
Global Equity (Box 5)
Europe
Real Return (Box 2)
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Signal Signal
Markets and Politics
13
-50.00
-40.00
-30.00
-20.00
-10.00
0.00
10.00
20.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
110.00
120.00
130.00
Financials Return vs. Broader Market (RH Axis) S&P Financials Normalized S&P Normalized
4/18/11S&P puts US on watch
07/11Debt ceiling debate Intensifies
7/31/11Debt ceiling agreement reached
8/5/2011S&P downgrades US
7/25/10Frank Dodd passes into law
9/21/11Operation Twist
4/23/10Greece requests bailout
5/9/10Creation of EFSF
11/28/10Irish bailout approved
5/16/11Portugal bailout approved
10/2/11Greece misses targets
8/8/11ECB begins buying Italian and Spanish bonds
8/26/2011Jackson Hole
10/26/11EU plan announced
11/9/11Italian yields pierce 7%
12/2/11Good US jobs report
12/22/11LTRO 1
1/13/12France downgraded
2/3/12Jobless rate falls to 8.3%
2/21/122nd Greek bailout finalized
2/29/12LTRO 2
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Correlations Reach All-Time High in 2011
14
Text box
OverviewCurrent
ConditionsLong-Term
OutlookAppendix Source: Nomura Securities International, Inc., Russell, IDC
Risk Signal UpdateBubble Monitor
15OverviewCurrent
ConditionsLong-Term
OutlookAppendix
S&P 500
EAFE
February, 2009
Gold
Crude Oil
REITS
S&P 500
EAFE
(3.5) (2.5) (1.5) (0.5) 0.5 1.5 2.5 3.5
Gold
10 Year Treasuries
Australian Dollar
REITS
Crude Oil
S&P 500
Emerging Markets
Property Index
BBB Credit
EAFE
7 Year Z score
Bubble Level Monitor: March 2012
(3.5) (2.5) (1.5) (0.5) 0.5 1.5 2.5 3.5
10 Year Treasuries
Gold
Australian Dollar
Property Index
Crude Oil
REITS
Emerging Markets
BBB Credit
S&P 500
EAFE
7 Year Z score
Bubble Level Monitor: September 2011
(3.5) (2.5) (1.5) (0.5) 0.5 1.5 2.5 3.5
10 Year Treasuries
Gold
Property Index
Emerging Markets
Crude Oil
Australian Dollar
EAFE
REITS
S&P 500
BBB Credit
7 Year Z score
Bubble Level Monitor: March 2009
(3.5) (2.5) (1.5) (0.5) 0.5 1.5 2.5 3.5
Gold
Property Index
Crude Oil
10 Year Treasuries
REITS
Australian Dollar
Emerging Markets
EAFE
S&P 500
BBB Credit
7 Year Z score
Bubble Level Monitor: September 2008
16
One Year Three Years
Le
ast A
ttra
ctive
Mo
st A
ttra
ctive
3431
28
22
16
High Yield Debt Distressed
Debt LC High Quality Equities
Bank Loans
Stronger Dollar
4644 43
31
16
US Sovereign
Debt Financial Sector
EquitiesEuro
Currency
Non US Dev.
Sovereign Debt
European Equities
Note: Bubbles represent the total number of votes for an asset
29 2925
22 22
Emerging Market Equities
High Yield Debt Stronger
Dollar
Opportunistic Real Estate
Distressed Debt
60
45
2622 21
Non US Dev.
Sovereign Debt
Core Real Estate
Opportunistic Rea l Estate Investment
Grade Credit
US Sovereign
Debt
2012 Best Ideas SurveyTop 5 Ideas
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Residential Mortgage-Backed Securities (RMBS)
Comparable Security Yields as of 2/29/2012
Average Life (Years)
Yield (%)
Investment Grade 1-10 year 5.2 2.7
High Yield Corporate 6.6 7.0
Non-Agency RMBS* 4.8 13.0
*TRS portfolio
17
0
20
40
60
80
100
120
2006 2007 2008 2009 2010 2011
ABX – Non-Agency RMBS
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
Cumulative Total Returns (January 2008 - Present)
Treasuries High Yield ABX
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Equity Valuations
18Sources: Bloomberg, DatastreamOverviewCurrent
ConditionsLong-Term
OutlookAppendix
152%
122%
50%
75%
100%
125%
150%
175%
200%
225%
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Small/Large Trailing P/E
111%
139%
50%
75%
100%
125%
150%
175%
200%
225%
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
EAFE/EM Forward P/E
111%
102%
50%
75%
100%
125%
150%
175%
200%
225%
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
US/EAFE Forward P/E
129%
150%
50%
100%
150%
200%
250%
300%
350%
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Growth/Value Trailing P/E
0.8
0.9
1
1.1
1.2
1.3
1.4
1.5
1.6
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Do
llars
pe
r Eu
ro
Euro spot Euro fair value
US Dollar Versus Yen and Euro
19OverviewCurrent
ConditionsLong-Term
OutlookAppendix
70
90
110
130
150
170
190
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
Ye
n p
er
Do
llar
Yen spot Yen fair value
81
88
1.34
1.28
Long-Term Treasury Bonds and Real Yields
20
-0.61
-0.21
-2.0
-1.5
-1.0
-0.5
0.0
0.5
1.0
1.5
2.0Value Gap = Actual Yield - TRS Estimated Fair Value
10 Yr Value Gap 30 Yr Value Gap
Overvalued
Undervalued
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
-2
0
2
4
6
8
101
99
0
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
10-Year UST Yields
10 Yr Yld 10 Yr Real Yld
-2
0
2
4
6
8
10
19
90
19
92
19
94
19
96
19
98
20
00
20
02
20
04
20
06
20
08
20
10
20
12
30-Year UST Yields
30 Yr Yld 30 Yr Real Yld
3.4%
0.9%
2.4%
-0.1%
Long-Term Outlook
21
22
GMO 7-Year Asset Class Return ForecastsAs of December 31, 2011
Source: GMO (reprinted with permission)
The chart represents real return forecasts1 for several asset classes. These forecasts are forward-looking statements based upon the reasonable beliefs of GMO and are nota guarantee of future performance. Actual results may differ materially from the forecasts above
1 Long-term inflation assumption: 2.5% per year
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
Estimated
Range of
7-Year
Annualized
Returns
23
Historical Ability to Produce 8% Investment ReturnAs of December 31, 2011
Source: State Street and BloombergOverviewCurrent
ConditionsLong-Term
OutlookAppendix
7.9% 8.1% 6.7% 6.7% 5.8% 7.8% 5.6% 6.4% 5.8% 4.7% 6.5% 5.1% 5.1% 1.9%
5.5% 4.9%
3.5%
1.7% 3.6%
2.9%
3.2% 2.4%
2.0%
-2.1%
-3.2%
-0.4%
0.4%6.1%
13.4%13.0%
10.2%
8.4%
9.4%
10.7%
8.8% 8.9%
7.7%
2.6% 3.3%
4.8%5.5%
-4%
-2%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Current
Implied Diversification Risk Premium Earned
10 Yr Treasury Bond YTM (Ten Years Earlier)
10 Yr Annualized Return of TRS Fund
TRS Target Long-Term Return RequiredRisk
Premium Going
Forward
Implied Loss from Diversification
24
Summary PointsAs of December 31, 2011
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
One Year Three Year
Investment Return 1.9% 12.0%
Alpha -2.1% 0.3%
TUCS Rank 32nd 13th
Investment Earnings $5.7 Billion $34.1 Billion
Top Performers Long Treasuries 30.8% REITs 22.9%
US TIPS 13.6% Dislocated Credit 15.3%
Real Assets 12.7% Public Equity 12.5%
Private Equity 11.2% TIPS 11.1%
REITs 8.8% Long Treasuries 8.8%
Appendix
25
26
TUCS Comparisons for Public TrustsGreater Than $10 Billion
Source: Wilshire Trust Universe Comparison Services (TUCS).** All TUCS returns are reported GROSS of Management Fees.
Master Trust Performance AnalysisPerformance Comparison
Total Returns of Public Fund Master Trusts > $10 BillionCumulative Periods Ending: December 31, 2011
Percentile Rankings 1 Qtr 2 Qtrs 3 Qtrs 1 Year 2 Years 3 Years 4 Years 5 Years 7 Years 10 Years
5th 6.47 4.31 6.47 8.35 9.56 12.25 5.98 6.12 5.88 6.8625th 5.13 -3.48 -1.66 2.65 7.77 11.91 0.75 2.31 4.89 6.0150th 4.29 -4.44 -2.95 0.86 6.80 10.39 0.05 1.89 4.57 5.5275th 3.77 -5.05 -3.80 0.25 6.50 10.21 -0.66 1.33 4.17 5.2895th 2.50 -6.05 -5.10 -1.07 5.91 8.40 -1.71 0.62 3.56 4.51
No. of Observations 41 40 40 40 39 39 39 39 38 37
Total Fund 3.81 (72) -3.48 (25) -2.20 (32) 1.96 (32) 8.21 (15) 12.10 (13) 0.63 (30) 2.31 (25) 4.66 (41) 5.52 (50)Total Fund Benchmark 3.86 (67) -1.70 (8) -0.07 (10) 3.91 (8) 8.36 (8) 11.74 (27) 0.93 (17) 2.44 (20) 4.63 (47) 5.45 (52)
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
27
Economic ForecastsAs of December 31, 2011
Source: BloombergOverviewCurrent
ConditionsLong-Term
OutlookAppendix
Actual 2012 Forecast 2013 Forecast
Indicator Q4 2011 Q1 Q2 Q3 Q4 Q1
Economic Activity
Real GDP (QoQ % saar) 3.0 2.1 2.2 2.4 2.5 2.3
CPI (YoY%) 3.3 2.4 2.0 1.8 2.0 2.0
Unemployment (%) 8.7 8.3 8.3 8.2 8.1 8.0
External Balance
Current Account (% of GDP) -3.1 -3.0 -3.0 -3.0 -3.0 -3.0
Fiscal Balance
Budget (% of GDP) -8.2 -8.3 -6.9 -6.6 -6.8 -6.8
Interest Rates
Central Bank Rate (%) 0.3 0.3 0.3 0.3 0.3 0.3
2-Year Note (%) 0.2 0.3 0.3 0.4 0.5 0.6
10-Year Note (%) 1.9 2.0 2.1 2.3 2.5 2.7
Exchange Rates
EUR/USD 1.3 1.3 1.3 1.3 1.3 1.3
28
Description of TRS BenchmarksAs of December 31, 2011
Source: TRS Investment Policy StatementOverviewCurrent
ConditionsLong-Term
OutlookAppendix
Asset Class Benchmark Description
US Large Cap Equity MSCI USA Standard Index
US Small Cap Equity MSCI USA Small Cap Index
Non-US Developed Equity MSCI EAFE+Canada Index
Emerging Market Equity MSCI Emerging Markets Index
Directional Hedge Funds HFRI Fund of Funds Index - Composite
Private Equity State Street Private Equity Index (lagged one quarter)
US Treasury Barclays (BarCap) US Long Treasury Index
Absolute Return 3 Month LIBOR + 2% applied annually
Cash Citigroup 90-day US Treasury Index
Stable Value Hedge Funds HFRI Fund of Funds Index - Conservative
Real Assets NCREIF ODCE Index (lagged one quarter)
US TIPS Barclays (BarCap) US Treasury TIPS index
Commodities Commodities (Int & SPN)
REITs MSCI REIT Index
29
Historical Trust Returns
Global Equity60%
22% - US Large Cap5% - US Small Cap
15% - Non- US Developed10% - Emerging Market Equities
8% - Private Equity
Source: State Street Bank
Total Trust Quarterly 1 Year5 Years
Annualized10 Years
Annualized
Global Equity 4.6% -6.2% -0.7% 4.4%
Stable Value 1.4% 17.0% 7.9% 7.0%
Real Return -0.2% 11.1% 5.3% 5.5%
Alternative Markets
Private Equity -4.5% 11.2% 8.1% 13.2%
Hedge Funds* 0.3% -1.4% 1.1% 4.3%
Real Assets 1.8% 12.7% -1.7% 1.7%
Total Trust 3.8% 1.8% 2.3% 5.5%
Total Trust Composite Index 3.9% 3.9% 2.5% 5.5%
Trust Value Added -0.1% -2.1% -0.2% 0.0%
OverviewCurrent
ConditionsLong-Term
OutlookAppendix
* Hedge Funds includes both Stable Value and Directional Hedge Funds
Chi Kit Chai Steve LeBlanc
David DeStefano Rich Hall Janis Hydak Eric Lang Nigel Lewis Shayne McGuire Dale West
Mark Albert Bernie Bozzelli Ralph Linn
Jase Auby Sylvia Bell Patrick Cosgrove Katy Hoffman Susanne Gealy Neil Randall John Ritter Curt Rogers
Tom Cammack Kay Cuclis Tim Jones Kevin Lincoln Allen MacDonell Steve Peterson Matt Robertson Wayne Speer KJ Van Ackeren John Watkins
Mark Cassens Brad Gilbert Michael Lazorik Jaime Llano Scott Moore Michael Pia Corina Scoggins Joe Tannehill Courtney Villalta Grant Walker
James Nield Demetrius Pope
Phillip Auth Ashley Baum Grant Birdwell Todd Centurino William Guinn Craig McCullough Marshall Reid Tayyib Shah Brad Thawley Jennifer Wenzel
Stuart Bernstein Rich Campbell John DeMichelle Amit Kumar Stacey Peot Craig Rochette Daniel Steinberg Nathan Zinn
Jeremy Aston Brian BaumhoverPatricia Cantu Kendall Courtney Karoline Freeman Jon Hook Scott Ramsower Matt Talbert Mark Telschow Susan Wade
David Cox Jingshan Fu Kelly Newhall Komson Silapachai
JB Daumerie Ranu Dutta Roy Kurian Terri Krumnow Lourdes Llano Barbara Woodard Tony Yiu
Pat Barker Rachel Clark Jelena Melenseko Jared Simpson Kristi Vorce Ross Willman
Andy Cronin Chase Hill Felicia Jones Jon Klekman Melissa Kleihege Steve Lambert Maribel Nesuda Lilly Rodgers Molly Rose Thomas Albright
Monica Larson Gracie Marsh Cynthia Mendoza Hugo Rangel Babette Ruiz Marina Salazar Sharon Toalson Susan White
Associate (8)
Senior Managing Directors (2)
Jerry Albright, Deputy CIO
Britt Harris, CIO
Assistants (8)
Senior Investment Managers (22)
Directors (9)
Senior Directors (3)
Managing Directors (7)
Mohan Balachandran
Irma Zavaleta-Castillo
Barbara Forssell
Investment Managers (18)
Senior Associate (14)
Senior Analyst (7)
Analyst (9)
IMD OrganizationAs of March 2012
30Overview
Current Conditions
Long-Term Outlook
Appendix
Key Positions0 New Hire/Positions0 Turnover1 Transfer
50 MBAs 22 Other Masters30 CFAs5 PhDs3 JDs
Risk Signals
No Bubble Signals in March, 2012
100 different assets monitored monthly
3 Factor model
Relative index change, correlations, absolute change
Most recent bubbles have been in commodities and fixed income
-
2
4
6
8
10
12
14
A-9
9
D-9
9
A-0
0
A-0
0
D-0
0
A-0
1
A-0
1
D-0
1
A-0
2
A-0
2
D-0
2
A-0
3
A-0
3
D-0
3
A-0
4
A-0
4
D-0
4
A-0
5
A-0
5
D-0
5
A-0
6
A-0
6
D-0
6
A-0
7
A-0
7
D-0
7
A-0
8
A-0
8
D-0
8
A-0
9
A-0
9
D-0
9
A-1
0
A-1
0
D-1
0
A-1
1
A-1
1
D-1
1
Nu
mb
er o
f Bu
bb
les
Monthly Bubble Signals by Asset Class
Equities Fixed Income Commodities Currencies Alternatives
31OverviewCurrent
ConditionsLong-Term
OutlookAppendix
(3.5) (2.5) (1.5) (0.5) 0.5 1.5 2.5 3.5
Gold
10 Year Treasuries
Australian Dollar
REITS
Crude Oil
S&P 500
Emerging Markets
Property Index
BBB Credit
EAFE
7 Year Z score
Bubble Level Monitor: March 2012
Page Intentionally Left Blank
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