Policemen's and Firefighters' Retirement Fund

October 7, 2008

Questions or Comments?

Financial Information

The PFRF is funded by employer and employee contributions. Employees contribute 11% of their salary and the LFUCG contributes 18% of salaries. The financial management and oversight of the fund includes active investment management, an annual financial audit and a bi-annual actuarial analyses.

Investments

The PFRF has contracted with external investment managers to manage all funds. The Board has adopted an investment policy that recommends the following target allocations based on asset class:

Asset Class	Target Share	Manager
US Large Cap Value Equities	15%	Dodge Cox
US Large Cap Growth Equities	10%	Chase Invsetment Counsel
US Small Cap Value Equities	15%	Neuberger & Berman, LLC
Total Equities	40%

US Broad Market Fixed Income	25%	Dupree & Company, Inc.
US High Yield Fixed Income	5%	MacKay Shields
Total Fixed Income	30%

International Growth Equities	10%	Baring Asset Management
International Value Equities	10%	Acadian Asset Management
Total International	20%

Real Estate	10%	JP Morgan Real Estate

Total Portfolio	100%