The State of California has four types of fiduciary funds: private purpose trust funds, pension and other

employee benefit trust funds, investment trust funds, and agency funds. The private purpose trust funds ended

the fiscal year with net assets of $2.7 billion. The pension and other employee benefit trust funds ended the

fiscal year with net assets of $432.3 billion. The State’s only investment trust fund, the Local Agency

Investment Fund, ended the fiscal year with net assets of $19.7 billion. Agency funds act as clearing accounts

and thus do not have net assets.

For the year ended June 30, 2007, the fiduciary funds’ combined net assets were $455 billion, a $73.5 billion

increase from prior year net assets. The increase in net assets was mainly attributable to investment income