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, 2010, MPERS' investment portfolio had a total market value of $1.3 billion representing a return of 12.9% for the fiscal year. During the course of the year, MPERS' Board of Trustees completed a review of the current asset allocation to ensure the strategies being utilized are appropriate relative to the System's return objectives and tolerance for risk. With the help of outside consultants, each and every facet of the asset allocation process was reviewed and a number of changes were approved going forward. As we move forward with implementing the asset allocation, the primary focus will be to gradually shift assets away from publicly traded stocks and increase exposures to traditional fixed income, real estate, and private equity structures.