The Flagship Long-Term Pool targets long-term growth. It is a broadly diversified portfolio offering domestic and international market exposure, investing in large-cap and small-cap securities in developed countries and emerging markets with an allocation to alternative investments.
The desired investment objective is a long-term real rate of return on assets that is greater than the assumed rate of inflation as measured by the U.S. Consumer Price Index plus investment related fees and the sustained spend rate determined by the DCF Board of Directors. The target rate of return for the pool has been based upon an analysis of historical returns supplemented with an economic and structural review for each asset class. The Investment Committee realizes that market performance varies and that a real rate of return may not be meaningful during some periods.
|U.S. Equity||25-45%||35%||Russell 3000|
|Non-U.S. Equity||15-35%||25%||MSCI All Country World ex-U.S.|
|Alternatives||10-25%||15%||HFRI Funds-of-Funds Composite|
|Fixed Income||10-30%||20%||Bloomberg Barclays U.S. Aggregate|
|Real Estate||0-10%||5%||NCREIF Property|