DP15 | Dallas Police & Fire Pension System, Comprehensive Annual Financial Report for the Year Ended December 31, 2015. Transmittal letter July 21, 2016; independent auditor's report July 21, 2016. Excerpts below are verbatim except line breaks and spacing in tabular columns; report page numbers refer to printed pages, not PDF sheet numbers. [Transmittal letter, printed p. 4] The Plans’ net position decreased by $396 million in 2015 driven primarily by declines in real estate and private equity investments. Real estate performance was adversely impacted by changes in the estimated fair value of certain development stage properties, as well as declines in the estimated enterprise value of certain real estate related business ventures which were previously included in the private equity asset class and reclassified in 2015 to the real estate asset class. [Transmittal letter, printed p. 6, Real Estate Portfolio] The real estate asset class target allocation was reduced to 12% in the new asset allocation adopted in 2016. At December 31, 2015, real estate accounted for 23.48% of the total portfolio. [Financial Information, Management's Discussion and Analysis, printed p. 20] The larger increase in DROP lump sum payments in 2015 is partially due to implementation of the Required Annual Distribution as a result of the 2014 plan amendment (see further discussion below). Increased DROP withdrawals are also presumed to be due to anticipation of potential proposed amendments to the DROP program in a future plan amendment. The total DROP account balance was $1.52 billion and $1.42 billion at December 31, 2015 and 2014, respectively. Average monthly benefit payments were $17.1 million and $16.0 million per month for 2015 and 2014, respectively. [Financial Information, Combining Statements of Fiduciary Net Position, printed p. 24; December 31, 2015, Total column, dollars] Short-term investments $ 29,986,714 Fixed income securities 383,057,125 Equity securities 439,815,460 Real assets 1,135,348,482 Private equity 445,014,054 Alternative investments 395,025,520 Forward currency contracts (388,840) Total investments 2,827,858,515 Cash and cash equivalents 77,072,359 Total assets 3,070,138,554 Notes payable 235,314,513 Net position held in trust-restricted for pension benefits $ 2,699,581,009 [Notes to Combining Financial Statements, printed p. 35, investment detail; December 31, 2015, dollars] Real estate 651,936,804 Infrastructure 197,551,994 Timberland 123,592,696 Farmland 162,266,988 Private equity 445,014,054 Total $ 2,827,858,515 [Notes to Combining Financial Statements, printed p. 28, DROP] Upon retirement with DPFP, the member is able to withdraw amounts from their DROP account along with receiving monthly pension benefits. [Notes to Combining Financial Statements, printed p. 44, DROP, table units: thousands] Combined Pension Plan Balance at December 31, 2014 $ 1,414,248 Accumulations 203,275 Distributions (111,802) Balance at December 31, 2015 $ 1,505,721 Supplemental Plan Balance at December 31, 2014 $ 10,391 Accumulations 1,276 Distributions (773) Balance at December 31, 2015 $ 10,894 [Investment Information, printed p. 63, consultant portfolio allocation; different valuation/conventions from audited investment-detail table] GLOBAL PRIVATE EQUITY* 461,964,044 15.34% (20.2%) GLOBAL REAL ESTATE* 706,930,030 23.48% (31.7%) CASH AND EQUIVALENTS $ 82,122,733 2.73% 1.3% * Market values and returns for Private Investments and related benchmarks are lagged by one quarter and adjusted for cash flows as discussed above. [Notes to Combining Financial Statements, printed p. 49, Subsequent Events, March 2016 adopted target allocation] Private Equity 5% 4% 15% Real Estate 12% 10% 25% Cash 2% 0% 5% [Financial Information, Management's Discussion and Analysis, printed p. 19] Distributions to members consist of lump sum payments and monthly payments of retirement, disability, and survivor benefits, as well as monthly installment payments of DROP balances.