State statutes require the system to make investments using the same care, skill and diligence that a prudent person acting in a similar capacity would use.  In fulfilling this obligation, the Board of Trustees has established a formal investment policy to clearly define the roles and responsibilities of the Board, staff and consultants, and to ensure that system assets are invested in a diversified portfolio following prudent investment standards.  The Board of Trustees determines the broad asset allocation policies and return objectives of the plan, and retain investment staff, consultants, a master custodian and other advisors to implement and execute these policies. 

The primary objective of the MoDOT & Patrol Employees’ Retirement System (MPERS) is to provide active and retired employees with adequate retirement benefits.  The investment portfolio is constructed to generate a total return that, when added to employer contributions, is sufficient to meet benefit obligations.  Following the prudent standards for preservation of capital, the goal is to achieve the highest possible rate of return consistent with the plan’s tolerance for risk as determined by the Board of Trustees in its role as fiduciary.

As of June 30, 2006, the MPERS investment portfolio had a market value of $1.59 billion, representing an increase of 158 million over fiscal year-end 2005.  Over the course of the year, an additional $55.4 million was transferred out of the fund to meet benefit payments.  When viewed together, asset growth from investments equated to $213.4 million. 

Led by the performance of international equities and real estate, MPERS’ fiscal year 2006 return of 14.97% ranks in the top two percent of MPERS’ peer universe.