Institutional Federal Compliance Report 2021

76 • Notes to Basic Financial Statements __________________________________________________________________________ The System’s investments at March 31, 2019, mea- sured at the NAV were as follows (amounts in billions): Redemption Unfunded Frequency Redemption Investment Type Fair Value Commitments (If Currently Eligible) Notice Period Private equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19 $ 15 N/A N/A Hedge funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 —00000 Monthly, Quarterly, 5-120 Days Annually, Semi-Annually Commingled international equity funds . . . . . . . . . . . . . . . . . . 4 —00000 Daily, Monthly, 2-120 Days Quarterly Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15 4 N/A N/A Global fixed income funds . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 —00000 Daily 0-30 Days Opportunistic . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 2 N/A, Monthly, N/A, 30-540 Days Quarterly Real assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 N/A N/A Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 55 $ 23

Global fixed income funds consist of three funds for which the System is the only limited partner. These funds invest primarily in both privately and publicly issued global fixed income securities. The investments are valued at the NAV of units held at the end of the period based upon the fair value of the underlying investments. Commingled international equity funds consist of four commingled investment vehicles, which invest primarily in publicly traded global equity securities. The funds are valued at the NAV of units held at the end of the period based upon the fair value of the underlying investments. The System’s alternative investments portfolio includes private equity, absolute return strategy invest- ments, opportunistic funds, real assets and real estate through limited partnership structures. Private equity (9.0 percent of the System’s total investment assets at March 31, 2019) consists of buyout, co-investments, distressed debt and turnaround funds, fund of funds, Taxes Receivable Taxes receivable represent amounts owed by taxpayers for the 2018 calendar year and the first quarter of the 2019 calendar year, including prior year assessments for underpayments, penalties and interest. Taxes receivable are recognized as revenue when they become both measurable and available, based on actual col- lections or estimates of amounts to be collected during the next 12 months. Note 3

growth equity, and venture capital. Absolute return strategy investments (3.6 percent) consist of invest- ments in strategies including hedged equity, credit, global macro, managed futures, distressed debt, emerging markets, and long-only equity strategies. Opportunistic (1.3 percent) consists of investments in both public and private companies, property, and real assets. Real assets (1.0 percent) consist of com- modities, farmland, inflation-linked bonds, infrastruc- ture, and renewables. The real estate private equity funds (7.2 percent) consist of investments in closed- end, open-end, and fund of funds. The fair values of the alternative investments have been determined using the NAV per share (or its equivalent) of the System’s ownership interest in partner’s capital. The private equity, opportunistic funds, real assets, and real estate are not eligible for redemption. Distribu- tions are received as underlying investments within the funds are liquidated, which on average can occur over a span of 5-10 years.

Taxes Receivable, Tax Refunds Payable and Tax Abatements

Personal income tax (PIT) revenues are reported as income when earned by the taxpayers. The primary components of the PIT receivable are the estimated and withholding payments that relate to the first quarter of the 2019 calendar year, payments with final returns which relate to the 2018 calendar year, and assessments which relate to prior tax periods.