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INVESTMENT SUMMARY
The Washington State Investment Board manages retirement fund assets with the statutory requirement to maximize investment returns at a prudent level of risk. The retirement Commingled Trust Fund (CTF) increased by $10.1 billion during Fiscal Year 2007 to $63.9 billion. The CTF return was 21.33 percent for the fiscal year.

The table below shows the returns for the CTF on a total fund basis and by asset class.

CTF INVESTMENT RETURNS (as of June 30, 2007)
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Investment performance is a result of two primary factors: individual asset selection and the allocation of the portfolio among asset classes (e.g. stocks, fixed income, real estate).

Accordingly, the board sets a specific long-term target asset mix and adopts tight ranges around those targets to control the overall risk and return of the CTF. On a daily basis, the board reviews the asset allocation in relation to the established ranges. The staff shifts assets whenever the allocation range for an asset exceeds the approved range or when cash is needed elsewhere. The board reviews changes to the overall asset mix every three to four years.

CURRENT ASSET ALLOCATIONS & TARGET ALLOCATIONS (as of June 30, 2007)
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The table to the right shows the ten largest holdings in the CTF‘s U.S. equity market index fund. The board invests in domestic stocks as part of an equity index portfolio and not as individual stock purchases.

LARGEST U.S. EQUITY HOLDINGS (as of June 30, 2007)
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