The Funds participate in a securities lending program as permitted by the investment policies as approved by the Board of
Trustees. The Funds' custodian lends specified securities to independent brokers in return for collateral of greater value. All loaned
securities are reported as assets on the combined balance sheet and are included in the categorization of credit risk.

Borrowing brokers must transfer in the form of cash, other securities or letters of credits valued at a minimum of 102% of the fair
value of domestic securities and international fixed income securities, or 105% of the fair value of international equity securities on
loan. Collateral is marked to market daily. If the fair value of the pledged collateral falls below the specified levels, additional
collateral is required to be pledged by the close of the next business day. In the event of default by a borrowing broker, the Funds'
custodial bank is obligated to indemnify the Funds if, and to the extent that, the fair value of collateral is insufficient to replace the
loaned securities. The Funds have not experienced any loss due to credit or market risk on securities lending activity since inception
of the program. As of June 30,2000, the Funds had no credit risk exposure to borrowers because the fair value of collateral held for
securities loaned exceeded the fair value of the related securities.

Although the average term of the Funds' security loans is one week, each loan can be terminated at will by either the Funds or
the borrower. Cash collateral is invested in two of the lending agent's short-term investment pools, which at June 30,2000 had
interest rate sensitivity durations of seventy-nine and sixty-six days. Because the relationship between the maturities of the
investment pools and the Funds security loans is affected by the maturities of the loans made by other entities that use the agents
pools, the Funds cannot match maturities. The Funds cannot pledge or sell collateral securities received unless and until a borrower
defaults. Investments made with cash received as collateral and the corresponding liabilities are reported in the Combining Balance
Sheet, Fiduciary Fund Types, Pension Trust Funds.

As of June 30,2000, the fair value of loaned securities and the related collateral were as follows (amounts expressed in thousands).

	Fair	Value
	Loaned	Collateral	Percent
Securities	Securities	Received	Collateralized
International equity securities ......................................................................................................	$ 844,489	$ 878,203	104.0%
Domestic & international fixed securities ....................................................................................	1,335,343	1,362,199	102.0%
Totals.........................................................................................................................................	$2,179,832	$2,240,402

The Funds may invest in derivatives as permitted by guidelines established by the Board of Trustees of the State Retirement and
Pension Systems of Maryland. Compliance with these guidelines is monitored by the Fund's staff. At times, the Funds invest in
foreign currency forward contracts, options, futures, collaterized mortgage obligations, mortgage-backed securities, interest-only
securities and principal-only securities. No derivatives were purchased with borrowed funds.

Derivatives are used to hedge against foreign currency risk, improve yield, adjust the duration of the fixed income portfolio, or
hedge against changes in interest rates. These securities are subject to changes in value due to changes in interest rates or currency
valuations. The mortgage-backed securities are subject to prepayment risk when interest rates are falling. Credit risk for derivatives
is the risk that the counterparty will be unable to meet its obligations.

The Funds invest in foreign currency forward contracts to hedge the currency risk in its international and global portfolios. The
following summary shows the foreign currency forward contracts outstanding as of June 30,2000 (amounts expressed in thousands).

Purchases
	Purchase Amount		Fair Value
Currency	(In Local Currency)		as of June 30, 2000
Euro currency...............................................................................................................................	202,609		$194,386
New Zealand dollar......................................................................................................................	4,843		2,280
Polish zloty...................................................................................................................................	11,200		2,425
U.S. dollar ....................................................................................................................................	250,816		250,816
Total purchases............................................................................... ...........................................			$449,907
Sales
		Purchase Amount		Fair Value
Currency		(In Local Currency)		as of June 30, 2000
Australian dollar...........................................................................................................................		3,859		$ 2,318
Canadian dollar. ...........................................................................................................................		17,009		11,486
Euro currency...............................................................................................................................		149,438		143,317
Japanese yen.................................................................................................................................		9,999,513		95,262
New Zealand dollar......................................................................................................................		8,376		3,943
Pound sterling..............................................................................................................................		2,206		3,343
Swedish krona..............................................................................................................................		166		19
U.S. dollar ....................................................................................................................................		187,839		187,839
Total sales..................................................................................................................................				$447,527

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