Institutional Federal Compliance Report 2021

As of June 30, 2017 (except for the State Lottery which is as of March 31, 2018), the business-type activities had the following investments and maturities (amounts in millions): 66 • Notes to Basic Financial Statements __________________________________________________________________________ Carrying Investment Maturities (in Years) Investment Type Value Less than 1 1-5 6-10 More than 10 U.S. Treasury strips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 625 $ 79 $ 160 $ 142 $ 244 Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 475 32 130 115 198 U.S. Treasury notes/bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . 316 316 —00000 —00000 —00000 AID bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 273 18 75 66 114 U.S. Treasury bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 161 161 —00000 —00000 —00000 Government-sponsored agency bonds . . . . . . . . . . . . . . . . . . 97 97 —00000 —00000 —00000 Mutual fund non-equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 —00000 1 24 1 Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 6 8 —00000 —00000 International bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 1 —00000 —00000 Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3 —00000 —00000 —00000 Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,993 $ 714 $ 375 $ 347 $ 557 External investment pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . 916 Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 258 U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Equity mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57 Global equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 Multi-strategy funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Hedge funds (equities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42 Private equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 U.S. fixed income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Variable annuity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Credit securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Foreign equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 U.S. money market funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,543

Credit Risk Generally, SUNY individual fixed income investment securities must be of investment grade. SUNY main- tains a portfolio that possesses an overall weighted average rating by Moody’s and S&P of at least A. Private placement securities must be rated A3 or higher by Moody’s or A- or higher by S&P. Parameters exist that allow some limited investments in non-invest- ment grade securities; however, investments rated below B3 by Moody’s or B- by S&P are prohibited. Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ AID bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Government-sponsored agency bonds . . . . . . . . . . . . . Mutual fund non-equities . . . . . . . . . . . . . . . . . . . . . . . Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Custodial Credit Risk At June 30, 2017, SUNY had $559 million in cash and investments held by the Dormitory Authority of the State of New York (DASNY), which represents bond proceeds needed to finance capital projects and to Investment Type

CUNY’s investment policy for the CUNY Invest- ment Pool includes specific guidelines for investment managers with a target allocation to fixed income of 20 percent. All of the Pool’s fixed income is invested in commingled funds. The Pool contains securities with an Average Quality Rating of AA to AA2. CUNY’s investment policy does not otherwise place formal limitations on credit risk. As of June 30, 2017 (except for the State Lottery, which is as of March 31, 2018), the business-type activ- ities had the following investments with ratings (amounts in millions):

Total

AAA

AA

A

BBB

Not Rated

475 $

475 $ —0000 $ —0000 $ —0000 $ —0000

273 97 26 14

—0000

273 20

—0000 —0000

—0000 —0000 —0000

—0000 —0000 —0000 —0000 1

77 24

—0000

1 4 3

—0000 —0000

1

9

3

—0000

—0000

888 $

576 $

294 $

8 $

9 $

1

establish required building and equipment replacement and debt service reserves. These cash and investments are registered in SUNY’s name and held by an agent or in a trust in SUNY’s name. SUNY’s investment policy does not formally address custodial credit risk.