(4)
DEPOSITS
AND
INVESTMENTS
DEPOSITS Custodial credit risk for deposits is the risk that, in the event of a financial institution failure, the Fund’s deposits may not be returned. All noninvestment related bank balances at year-end are insured or collateralized by securities recorded in the Fund’s name and held by the Fund’s agent, its master custodian (Northern Trust Bank). Cash held in the investment related bank account is neither insured nor collateralized for amounts in excess of $100,000. There is no deposit related deposit policy for custodial credit risk.
Carrying amount at June 30 Cash
$ 34,812,134
Bank balances at June 30
37,062,867
Amount exposed to custodial credit risk
36,915,098
INVESTMENTS The following table presents a summary of the Fund’s investments at fair values at June 30, 2008:
INVESTMENTS
FAIR
U.S. government and agency fixed income
$
VALUE
1,485,108,310
U.S. corporate fixed income
987,854,974
Foreign fixed income securities
131,426,685
U.S. equities
4,893,349,236
Foreign equities
2,436,361,447
Pooled short-term investment funds
468,514,226
Real estate
921,205,016
Private equity
296,631,650
Swaps
(26,881,336)
Options
(455,853)
Margin cash
8,700,000
Total investments
$
11,601,814,355
Included in the balance of the investments above are amounts categorized on the statement of plan net assets as cash equivalents totaling $468,514,226, which consists of pooled short-term investment funds managed by Northern Trust. Under the terms of the investment agreement for the pooled short-term investment funds, Northern Trust may invest in a variety of short-term investment securities. 28
Financials