|To realize the asset allocations set forth in the
Connecticut Retirement Plans and Trust Funds' (CRPTF) Investment
Policy Statement, the Treasurer administers Combined Investment
Funds ("CIF") as a series of mutual funds in which the CRPTF may
invest through the purchase of ownership interests. The asset mix
for the CRPTF is established by the Treasurer, with approval of the
independent Investment Advisory Council (IAC), based on (1) capital
market theory, (2) financial and fiduciary requirements, and (3)
liquidity needs. A broad array of asset classes is considered for
inclusion in a potential asset allocation structure. Each asset
class has its own distinct characteristics, as well as expectations
for long-term return and risk behavior.
Retirement Plans and Trust Funds has 11 active Combined Investment
Funds. You will find descriptions of each Fund below.
Domestic Equity Fund
The Domestic Equity Fund ("DEF") invests primarily in the
common stocks of U.S. corporations. Investments may include any
market capitalization or investment style. The Performance
Benchmark for the MEF is the Russell 3000 Index.
Emerging Markets International Stock Fund
The Emerging Markets International Stock Fund ("EMISF") invests
primarily in the common stocks of non-U.S. corporations. Non-U.S.
equities are defined as common stocks issued by companies
domiciled outside the U.S. The Performance Benchmark for the EMISF
is the Morgan Stanley Capital International Emerging Markets
Investable Market Index (MSCI EM IMI) with net dividends
Developed Markets International Stock Fund
The Development Markets International Stock Fund ("DMISF")
invests primarily in the common stocks of non-U.S. corporations
and may include investments in any market capitalization or
investment style. The Performance Benchmark for the DMISF is the
Morgan Stanley Capital International Europe Australasia and Far
East Investable Market Index (MSCI EAFE IMI) with net dividends
Core Fixed Income Fund
Emerging Market Debt Fund
The Core Fixed Income Fund ("CFIF") invests primarily in debt
instruments issued by the U.S. Government and its agencies,
"quasi-government" agencies, U.S. and international corporations,
Euro bonds, high quality quasi or sovereign debt and any other
public or private U.S. regulated debt securities. The Performance
Benchmark for the CFIF is the Barclays Capital U.S. Aggregate Bond
The Emerging Market Debt Fund ("EMDF") consists of managed
fixed income portfolios that invest in debt instruments issued by
governments, quasi-government agencies and companies operating in
developing countries as defined by the Fund benchmark and/or by
The World Bank. The Performance Benchmark for the EMDF is the J.P.
Morgan Emerging Markets Bonds Index Global Diversified/J.P. Morgan
Government Bond Index-Emerging Markets Global Diversified
High Yield Bond Fund
The High Yield Bond Fund ("HYBF") consists of actively managed
fixed income portfolios which, in aggregate, are debt instruments
rated below investment grade by a nationally recognized rating
agency service, such as Standard & Poor's, Moody's or Fitch. The
Performance Benchmark for the HYBF is the Citigroup U.S. High
Yield Market Capped Index.
Inflation Linked Bond Fund
The Inflation Linked Bond Fund ("ILBF") invests in
inflation-linked securities in global government bond markets. The
Performance Benchmark for the ILBF is Barclays Capital World
Government Inflation Linked Bond Index..
The objective of the Liquidity Fund ("LF") is to provide a
liquid source of funds to pay retirement benefits or trust
beneficiaries. It is expected that the Fund will earn a return
greater than that of money market investments. The benchmark for
the LF is the one-month London Interbank Offered Rate (LIBOR).
Alternative Investment Fund
The Alternative Investment Fund ("AIF") represents a unique
investment style that differs from traditional funds by offering
the potential to enhance return and/or reduce risk. The strategies
employed within AIF represent a broad set of investment styles,
mandates and products that focus primarily on the liquid equity,
fixed income and derivatives markets, and may also include
allocations to non-traditional investments, including illiquid
securities and investments. Such strategies could include, but are
not limited to, absolute return strategies, managed futures
strategies, commodities, real assets and other alternative asset
strategies. The Performance Benchmark for the AIF is the 90 Day
Treasury Bill + 300 basis points (90 Day T-Bill + 300).
Real Estate Fund
The Real Estate Fund ("REF") invests in real estate properties,
real estate related equity investments, and real estate related
debt and mortgages. The Fund consists of a number of externally
managed investment strategies and invests across core, value add,
opportunistic and publicly traded real estate securities. The
Performance Benchmark for the REF is the Open End Diversified Core
Equity (NFI-ODCE)) Index.
Private Investment Fund
The Private Investment Fund ("PIF") consists of a number of
externally managed funds invested across venture capital and
corporate finance private equity strategies. Venture Capital
typically involves equity capital invested in young or development
stage companies, whether start-up, early, mid or late stage
companies. Corporate Finance typically involves equity and debt
capital invested in growth, mature or distressed stage companies,
often through the financing of acquisitions, spin-offs, mergers or
changes in capitalization. The Performance Benchmark for the PIF
is the Russell 3000 + 250 basis points Index.
For additional information about the investment policy of the Connecticut Retirement Plans and Trust Funds please consult the Investment Policy Statement.