1

PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)

Asset ClassMarket Value

(in millions)% of Total

TargetAllocations

PolicyRanges

Publicly-Traded Global Equity $8,799.2 15.8%Private Markets $8,162.0 14.6%

Total Equities $16,961.2 30.4% 30.00% +/- 10.0%

Investment Grade $5,912.8 10.6%Credit-Related $5,372.7 9.6%Inflation Protected $8,005.9 14.4%

Total Fixed Income $19,291.4 34.6% 36.00% +/- 10.0%

Master Limited Partnership (MLP) $2,262.7 4.1%Infrastructure $1,647.7 3.0%Commodities $4,204.7 7.5%Real Estate $5,407.6 9.7%

Total Real Assets $13,522.6 24.2% 24.00% +/- 10.0%

Risk Parity $4,507.4 8.1% 8.00% +/- 5.0%

Absolute Return $6,024.7 10.8% 10.00% +/- 5.0%

Cash and Cash Equivalents* $2,724.6 4.9% 6.00% +/- 3.0%

GROSS INVESTMENT PORTFOLIO $63,031.9 113.0% 114.00%

Financing ($7,244.8) (13.0%) (14.0%) +/- 9.0%

NET INVESTMENT PORTFOLIO $55,787.1 100.0% 100.00%

Net Other Assets and Liabilities $1,406.9

PSERS TOTAL NET ASSETS $57,194.0

* - includes Cash, Cash Equivalents, and net asset value accounting adjustments

2

PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)

Publicly Traded Equities, 15.8%

Private Markets, 14.6%

Investment Grade, 10.6%

Credit-Related, 9.6%

Inflation Protected, 14.4%MLP, 4.1%

Infrastructure, 3.0%Commodities, 7.5%

Real Estate, 9.7%Risk Parity, 8.1%

Absolute Return, 10.8%Cash and Cash Equivalents, 4.9%

Financing, -13.0%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

110%

120%

Total Real Assets24.2%

Total Fixed Income34.6%

Total Equities30.4%

3

PSERS’ Investment PortfolioAsset Allocation as of March 31, 2019 (Unaudited)

*Financing represents a negative 13.0% allocation and is not reflected in the pie chart.

Publicly Traded Equities, 15.8%

Private Markets, 14.6%

Investment Grade, 10.6%

Credit-Related, 9.6%

Inflation Protected, 14.4%

MLP, 4.1%

Infrastructure, 3.0%

Commodities, 7.5%

Real Estate, 9.7%

Risk Parity, 8.1%

Absolute Return, 10.8%Cash and Cash Equivalents, 4.9%

4

PSERS’ Historical Asset Allocation

-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

60%

U.S. Equity Non-U.S. Equity Fixed IncomeReal Estate Private Markets Absolute ReturnMLP Infrastructure Risk ParityCommodities Cash & Cash Equivalents Financing

5

PSERS’ Historical Net Investment Portfolio

0.8 2.14.9

17.3

28.8

33.7

39.3

44.848.9

53.4

48.1

43.5 42.3

48.351.8

57.0

67.2

62.7

43.145.7

51.448.5 49.2

52.7 51.949.2

52.455.6 55.4

53.455.8

$0

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$80

Month/Year

Bill

ions

6

PSERS’ Gross Investment PortfolioInternally Managed Assets

$0

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$40

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$80

Gross Investment Portfolio Internally Managed Assets

Bill

ions

7

PSERS’ Internally Managed Assets

$0

$5

$10

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$25

$30

06/2007 06/2008 06/2009 06/2010 06/2011 06/2012 06/2013 06/2014 06/2015 06/2016 06/2017 06/2018 09/2018 12/2018 03/2019

Bill

ions

U.S. Equity Fixed Income Cash & Cash Equivalents Non-U.S. Equity Commodities Real Estate Risk Parity Private Markets MLP Infrastructure

8

PSERS’ Summary Statements of Changes in Plan Net AssetsFor the Fiscal Years Ended June 30

Additions: 2013( $ in millions)

2014( $ in millions)

2015( $ in millions)

2016( $ in millions)

2017( $ in millions)

2018( $ in millions)

• Member Contributions 991 967 985 989 1,014 1,026

• Employer Contributions 1,446 1,992 2,597 3,190 3,833 4,250

• Net Investment Income 4,126 7,098 1,328 473 4,995 4,714

Total Additions 6,563 10,057 4,910 4,652 9,842 9,990

Deductions:

• Pension Benefits 6,044 6,053 6,221 6,360 6,474 6,655

• Administrative Expenses 37 39 42 45 45 47

Total Deductions 6,081 6,092 6,263 6,405 6,519 6,702

Net Increase/(Decrease) in Plan Net Assets 482 3,965 (1,353) (1,753) 3,323 3,288

9

PSERS Annual Cash Flows History – Since 1982

(14%)

(12%)

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

($10)

($8)

($6)

($4)

($2)

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2001

2002

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2009

2010

2011

2012

2013

2014

2015

2016

2017

2018Bill

ions

Member Contributions ($) Employer Contributions ($)Benefit Payments ($) Net Cash Flow Shortfall ($)Cash Flow Excess/Shortfall as % of Beginning NAV (%)

10

PSERS Annual Cash Flows History – Since 2001

(14%)

(12%)

(10%)

(8%)

(6%)

(4%)

(2%)

0%

2%

4%

6%

8%

10%

($10)

($8)

($6)

($4)

($2)

$0

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$8

$10

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018Bill

ions

Member Contributions ($) Employer Contributions ($)Benefit Payments ($) Net Cash Flow Shortfall ($)Cash Flow Excess/Shortfall as % of Beginning NAV (%)