Institutional Federal Compliance Report 2021

______________________________________________________________________________________________ STATE OF NEW YORK • 71

formally limit investment maturities as a means of managing exposure to fair market value losses arising from increased interest rates. The Lottery’s policy for managing interest rate risk is to hold investment secu- rities to maturity, at which time the fair value of the investment is equal to the stated maturity value. Investment Pool SUNY has certain assets included in its financial state- ments that are attributable to the statutory colleges at Cornell University and Alfred University, and are held as a portfolio of investments in external invest- ment pools. The fair value of the investments is pri- marily based on the unit value of the pools and the number of shares owned in each pool. The unit values of the pools, as well as their fair values at June 30, 2018, are presented in the table below (fair value amounts in millions):

At June 30, 2018, CUNY had $379 million in investments held by DASNY or the bond trustee, and not in CUNY’s name. CUNY’s policy for deposits of the CUNY Investment Pool does not allow for partic- ipation in programs that have uninsured investments held by counterparties and uses specific monitor ini- tiatives for investments as a means of limiting custodial credit risk. CUNY’s investment policy does not for- mally address custodial credit risk for investments not included in the Investment Pool. Interest Rate Risk SUNY has policies in place that limit fixed income investment duration within certain benchmarks, and a highly diversified portfolio is maintained which limits interest rate exposure. SUNY does not formally address any interest rate risk related to its investment pools. CUNY’s investment policy does not otherwise

Pool Type

Unit Value

Fair Value

Cornell Statutory Colleges: Endowments: Long-term Investment Pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ Charitable Gift Annuities Master Trust Units . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Charitable Trusts: Endowment Strategy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Trust Fund—Growth . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Trust Fund—Income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Common Trust Fund—Premier . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pooled Life Income Funds (PLIF): PLIF B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Alfred Ceramics: Endowment Long-term Investment Pool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Total External Investment Pools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

58.27 $

928 10

1.81

56.82 41.96 12.29

26

6 2 1

8.2

2.56

1

7.24

22

$

996

CUNY has certain assets included with investments in its financial statements, which are pooled on a fair value basis, with each individual fund subscribing to or disposing of units on the basis of the fair value per unit determined quarterly. At June 30, 2018, the invest- ment pool had a fair value of $265 million. Fair Value Except for investments reported at net asset value (NAV) or its equivalent, as described in the table below, SUNY reports its investments at fair value. For invest- ments in mutual funds and exchange-traded funds, fair value is determined based on quoted market prices as of balance sheet date June 30, 2018. Investments in limited liability partnerships and corporations rep- resent investments measured at NAV or its equivalent and include hedge funds, real estate, domestic and foreign equity funds, fixed income securities, and private equity funds in various investment vehicles. These investments, which are not exchange-traded and for which fair values are not readily determinable, are typically redeemable at NAV under the terms of the investment agreements.

CUNY’s investments in debt and equity securities and certain other investments with readily deter- minable fair values are reported at fair value, which is based upon values provided by CUNY’s custodian or current market quotations. Investments in hedge funds, private equity funds, and limited partnerships are reported at NAV as determined by the fund man- agers, without adjustment when assessed as reason- able, unless it is probable that all or a portion of the investment will be sold for an amount different from NAV. As of June 30, 2018, CUNY had no plans or intentions to sell such investments at amounts differ- ent from NAV. Lottery investments are measured based upon quoted prices for the security in active markets, or based upon quoted prices for identical or similar assets in markets that are not active or upon other observable inputs such as interest rates and yield curves observable at commonly quoted intervals.