MEDIAN ANNUALIZED RETURN (%) Private Equity at Work: Strengthening Retirement for Millions of Americans Top 10 Pension Funds by Private Equity Return1 1 6 Iowa Public Employees' Retirement System Teacher Retirement System of Texas 2 Massachusetts Pension Reserves Investment Trust (PRIT) Fund 7 Utah Retirement System 3 Minnesota State Board of Investment (Combined Funds) 8 New York State and Local Retirement System 4 Houston Firefighters' Relief and Retirement Fund 9 California State Teachers' Retirement System 5 San Francisco Employees' Retirement System 10 Oregon Public Employees / Pennsylvania Public School Employees' Retirement Systems Pension funds’ investments in private equity outperform other asset classes based on median 10-year annualized returns2 7.9% 10-YEAR MEDIAN ANNUALIZED RETURN (%) PUBLIC EQUITY (STOCKS) PRIVATE EQUITY 12.3% 5.6% FIXED INCOME (BONDS) 7.4% REAL ESTATE Asset Allocation by Total Dollars Invested on a Dollar-Weighted Basis 2.7% - Cash/Short-Term Investments 6.7% - Other 8.0% - Real Estate Pension Funds invest 9.4% of their portfolio in private equity.3 9.4% - PRIVATE EQUITY 23.0% - Fixed Income 50.2% - Public Equity (Stocks) This study is based on data collected by BISON from over 150 U.S. public pension funds, where data were available at the time of analysis (August 2014). Return figures from marketable securities are reported both net and gross of management fees. Return figures for private equity and other illiquid assets are typically reported net of management fees and carry. 1 Ranking is based on 10-year annualized private equity returns. Reporting dates range from March 31, 2013 to December 31, 2013. 2 Asset class returns are based on pension funds that reported 10-year annualized returns as of June 30, 2013. 3 Investment allocation is based on pension funds with reporting dates that range from March 31, 2013 to June 30, 2014.