Amtrak 2015 Annual Report Download - page 45

National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
12. Postretirement Employee Benefits (continued)
43
Plan Assets
The Company’s pension plan asset allocation at September 30, 2015 and 2014, and target allocation for 2016,
are as follows:
Plan Assets
2016 2015 2014
Domestic equity securities 18-38 % 31.1 % 30.9 %
Global asset allocation funds 20-40 32.9 28.0
Fixed income securities 13-23 17.6 16.5
Common/collective trust 6-34 7.2 18.1
Real estate investment trust 0-10 6.4 5.3
Money market funds 0-5 0.9 1.2
Other assets* N/A 3.9 N/A
*Other assets consist of cash being held in a noninterest-bearing trustee account.
The investment strategy for Retirement Income Plan assets is to invest the assets in a manner whereby long-
term returns on the assets provide adequate funding for retiree pension payments. The investment objectives
of the pension fund are to: (1) promote the growth in the plan’s funded status, to the extent appropriate,
minimizing reliance on employer contributions as a source of benefit security, (2) invest the assets of the
plan to achieve the greatest reward consistent with a reasonable and prudent level of risk, and (3) achieve,
as a minimum over time, the passively managed asset return earned by market index funds, weighted in the
proportions outlined by the asset class exposures identified in the plan’s strategic allocation.
Assets are strategically allocated among equity, fixed income, real estate and global asset allocation managers
who have the ability to invest in stocks, bonds, and other assets in the U.S. and abroad in order to achieve
diversification of investments and to reduce volatility in investment returns as well as maintain flexibility
for the managers to allocate assets to areas of the market they believe have greater upside potential while
avoiding areas of the market that they believe are likely to underperform. The asset allocation is evaluated
and rebalanced to return each of the asset classes back to the target range percentage within six to eight weeks
following the end of each quarter, unless the Retirement Investment Committee determines otherwise. As a
result of the asset allocation diversification strategies, there are no significant concentrations of risk within
the portfolio of investments.
The accounting guidance on fair value measurements specifies a fair value hierarchy based on the ability to
observe inputs used in valuation techniques (Level 1, 2 and 3 - see Note 8). The following is a description
of the valuation methodologies used for the investments measured at fair value, including the general
classification of such instruments pursuant to the valuation hierarchy. The Company does not intend to sell
any of the funds at an amount different from NAV per share as of September 30, 2015, nor does the Company
have any unfunded commitments related to these funds.