Gail R. Schubert

ARMB manages assets based on the belief that asset allocation is the primary determinant in investment success. On an annual basis, the Board analyzes a wide array of asset classes, examining expected returns and risk parameters. The objective of this review is to ensure that the optimal combinations of investments are balanced with the funds' long-term objective of meeting future liabilities. ARMB seeks to achieve its expected long-term total return, as determined by the actuarially-required rate of return, while minimizing risk as determined by the projected standard deviation of the range of potential future returns. The asset allocation policy identifies target allocations to the classes of assets invested in and the ranges within which each can fluctuate as a percent of the total portfolio for each plan. At times the asset allocation for a plan may drift beyond the proscribed bands of the target allocation. At such times, the Board considers the costs and benefits of rebalancing the asset allocation to comply with the plan’s asset allocation policy.