The Intermediate-Term Index Pool seeks medium- to 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 select emerging markets. The pool will focus on having a strategic overweight to U.S. investments. Additionally, the pool will invest in passive (i.e., index) equity strategies to keep costs lower than a traditional all actively managed portfolio.
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. 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 DCF Investment Committee realizes that market performance varies and that a real rate of return may not be meaningful during some periods.
|U.S. Equity||45-55%||50%||Russell 3000|
|Non-U.S. Equity||5-15%||10%||MSCI EAFE|
|Emerging Markets||0-5%||0%||MSCI Emerging Markets|
|Fixed Income||35-45%||40%||Bloomberg Barclays U.S. Aggregate|