• Level 1 inputs are quoted prices in active markets for identical assets or liabilities. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset such as quoted prices for similar assets or liabilities. • Level 3 inputs are unobservable inputs for the asset or liability. Accounting Standards Update 2009‑12 (ASU 2009‑12) Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent), allows the Trust, as a practical expedient, to estimate the fair value of investments in investment companies for which the investment does not have a readily determinable fair market value using net asset value.
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Most of The Trust’s investments are in publicly traded securities or in commingled funds, including common trust funds, which are invested in publicly traded securities. Fair value for these investments is based on quoted market prices and observable net asset values. The Trust also invests in hedge funds, private equity and certain real estate investments. The fair value of these investments has been determined primarily through independent appraisals using an income based approach and the net asset values provided by the fund managers utilizing quoted market prices of the underlying securities, market values of comparable companies and discounted cash flow projections. These valuations are reviewed for reasonableness by management of The Trust. CFI invests for long-term growth of principal and income in real terms, consistent with a reasonable degree of risk. Donor advised funds that require a high degree of liquidity are invested in cash equivalents. The investments of NYCT are held in individual trusts at the bank designated by the donor in the instrument of gift. The following tables present The Trust’s fair value hierarchy at December 31, 2011 and 2010, respectively:
U.S. large cap equities $ Cash equivalents International equities Fixed income/mutual funds U.S. mid/small cap equities Hedge funds Fixed income/corporate bonds Private equity Fixed income/government bonds Real estate Balanced funds Fixed income/common trust funds Other
Fair value 434,868,878 $ 320,708,610 214,190,363 179,137,004 138,709,947 128,441,972 105,058,199 93,766,134 73,966,242 65,243,069 48,431,942 24,255,933 11,052,185
$ 1,837,830,478
2011 Level 1 Level 2 Level 3 394,960,748 $ 39,908,130 $ — 320,708,610 — — 124,637,671 89,552,692 — 179,137,004 — — 92,744,618 45,965,329 — — 128,441,972 — 81,352,409 23,705,790 — — — 93,766,134 40,996,734 32,969,508 — 26,833,991 — 38,409,078 29,855,622 18,576,320 — — 24,255,933 — 3,084,998 2,389,516 5,577,671
$ 1,294,312,405 $ 405,765,190 $ 137,752,883