Institutional Federal Compliance Report 2021

As of June 30, 2018 (except for the State Lottery which is as of March 31, 2019), the business-type activities had the following investments and maturities (amounts in millions): 70 • 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 notes/bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,837 $ 1,276 $ 170 $ 137 $ 254 Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 457 34 125 104 194 AID bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249 19 68 57 105 U.S. Treasury bills . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 244 244 —00000 —00000 —00000 Government-sponsored agency bonds . . . . . . . . . . . . . . . . . . 62 33 29 —00000 —00000 Mutual fund non-equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 4 —00000 44 1 U.S. Treasury strips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37 32 2 1 2 U.S. fixed income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 29 1 —00000 —00000 Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 10 4 —00000 —00000 International bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 —00000 —00000 —00000 Certificates of deposit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1 —00000 —00000 —00000 Subtotal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,982 $ 1,684 $ 399 $ 343 $ 556 External investment pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . 996 Cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 291 U.S. equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 Global equities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Equity mutual funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60 Multi-strategy funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Hedge funds (equities) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Private equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 Credit securities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Global fixed income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Limited partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 U.S. money market funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,665

Credit Risk Generally, SUNY individual fixed income investment securities must be of investment grade. 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. CUNY’s investment policy for the CUNY Invest- ment Pool includes specific guidelines for investment managers with a target allocation to fixed income, as well as reference to specific guidelines for each Municipal bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ AID bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Government-sponsored agency bonds . . . . . . . . . . . . . Mutual fund non-equities . . . . . . . . . . . . . . . . . . . . . . . Corporate bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . International bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Custodial Credit Risk At June 30, 2018, SUNY had $1.4 billion 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

investment manager. 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, 2018 (except for the State Lottery, which is as of March 31, 2019), the business-type activities had the following investments with ratings (amounts in millions):

Total

AAA

AA

A

BBB

Not Rated

457 $

457 $ —0000 $ —0000 $ —0000 $ —0000

249 62 49 14

—0000

—0000

—0000 —0000

—0000 —0000 —0000

249

48 44

14

—0000 —0000 —0000 —0000

4

1 5 1

1

—0000 —0000

8 1

2

—0000

833 $

550 $

18 $

7 $

9 $

249

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.