NE OF THE SIMPLEST AND

MOST EFECTIVE STRATEGIES

TO REDUCE RISK IN ANY TYPE

of market is asset allocation. We have all heard the advice, “Don’t put all ofyour eggs in one basket.” This advice isespecially important in saving for retire-ment. The goal of asset allocation is todiversify your retirement savings intoinvestments with different characteristicsso the risks of any one investment can be balanced by assets that move in differ-

ent cycles or respond to different market conditions. If you were to invest all ofyour retirement assets in stocks, you’d run the risk of losing a large percentage ofyour retirement savings when the stock market drops. If you diversify into otherinvestments such as bonds, cash, international markets, commodities, and infla-tion-protected securities, you can spread your risk across different markets andreduce the possibility of heavy losses. Asset allocation also takes the guesswork outof investing because you won’t have to speculate which asset class is going to dowell each year if you already have exposure to many different sectors of the market.

The URS Horizon Funds are asset allocation funds that can help you achievediversification. These funds have been professionally designed by our consultantsusing an “efficient frontier” model based on the timeframe you have until you willretire and begin using the funds. The Horizon Funds were designed by balancingeach of the asset classes to maximize return for a given amount of risk.

The Short Horizon Fund is designed for those who have approximately fiveyears or less until they need to access their funds. It has a lower level of market risk,but also a lower expected return. It includes more fixed income (cash, bonds,TIPS), some commodities, and fewer stocks. For those who anticipate needingtheir funds somewhere between 5 and 10 years from now, the Medium Horizon

2nd Quarter 2012

A n i n f o r m a t i o n a l b u l l e t i n p u b l i s h e d q u a r t e r l y f o r m e m b e r s o f t h e U t a h R e t i r e m e n t S y s t e m s

,, Utah Retirement Systems 401(k), 457, and IRAs

The Benefits of Asset Allocation7

8

910

1

2

3

4

5

6

1 URS Bond Fund (30%)

2 Inflation-Protected Securities (5%)

3 International Bonds (10%)

4 URS Large Cap Value Fund (6%)

5 URS Large Cap Index Fund (11%)

6 URS Large Cap Growth Fund (6%)

7 URS International Fund (18%)

8 URS Small Cap Stock Fund (5%)

9 Real Estate Investment Trusts (4%)

10 Commodities (5%)

7

8

910 1

2

3

45

6

Medium Horizon Fund

1 URS Income Fund (15%)

2 URS Bond Fund (35%)

3 Inflation-Protected Securities (10%)

4 International Bonds (10%)

5 URS Large Cap Value Fund (4%)

6 URS Large Cap Index Fund (5%)

7 URS Large Cap Growth Fund (4%)

8 URS International Fund (10%)

9 URS Small Cap Stock Fund (4%)

10 Commodities (3%)

Short Horizon Fund

O

Continued on back.

Do Over that RolloverN THIS COMPLEX WORLD IT’S NICE TO HAVE A DO OVER

from time to time. If you left or retired from employment covered by URS and rolled your savings plans over to another financial institution,

you may be eligible to roll your funds back to URS.

You don’t need to be currently employed with a covered employer in orderto roll funds into your URS Savings Plans. If you have service credit with URS,or are receiving a monthly benefit payment from the defined benefit pensionplan, you are still considered a member of URS and can roll eligible funds intoURS Savings Plans (401(k), 457, Roth and Traditional IRAs). Or, if you have an account with us and an account from other employment, you may also beable to consolidate the two (or more) accounts into your URS plan.

In addition, if you have quit or retired from a Utah public employer, buthave current earned income (such as W-2 wages or income from self employ-ment), you may be able to make new contributions to the IRAs.

For more information please contact URS at 801-366-7720 or 800-688-401k, or visit www.urs.org. �

I

U T A H R E T I R E M E N T S Y S T E M S

www.urs.org

Salt Lake City Office

401(k), 457, and IRAs P.O. Box 1590, Salt Lake City UT 84110-1590Or visit us at: 560 East 200 South, Suite 200, Salt Lake City, UT 84102-2021Phone: 801-366-7720 • 800-688-401k • Fax: 801-366-7445 • 800-753-7445

Southern Utah Branch Office

165 North 100 East #9St. George, UT 84770-2505Phone: 435-673-6300 • 800-950-4877

2012Stock Market

HolidaysThe New York Stock

Exchange will be closed on the following days during

the 2012 calendar year:

Labor Day September 3

Thanksgiving November 22

Christmas December 25

The NYSE Trading Floor will close early, at 1:00 p.m., Friday, November 23, 2012,

(the day after Thanksgiving) andMonday, December 24, 2012.

Transfers between investmentoptions cannot be made on marketholidays. This and other informa-tion about the New York Stock

Exchange can be found at

www.nyse.com.

URS Savings Plans Quarterly Bulletin • 2nd Quarter 2012

Fund is balanced between bonds, real estate, commodities, and stocks. This fund adds a littlemore market risk, but also has a higher expectedreturn. The Long Horizon Fund is designed forthose who have more than 10 years until retire-ment. This allocation adds more stocks, real estateand commodities, and reduces the amount ofbonds in the portfolio. While this adds some market risk, it also reduces inflation and longevityrisk and has the highest expected long-term returnof the three funds. �

1 URS Bond Fund (15%)

2 International Bonds (5%)

3 URS Large Cap Value Fund (6%)

4 URS Large Cap Index Fund (16%)

5 URS Large Cap Growth Fund (6%)

6 URS International Fund (28%)

7 URS Small Cap Stock Fund (9%)

8 Real Estate Investment Trusts (8%)

9 Commodities (7%)

7

8

91

2

3

4

56

Long Horizon Fund

The Benefits of Asset Allocation (Cont.)