Amtrak 2015 Annual Report Download - page 46

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
12. Postretirement Employee Benefits (continued)
44
Domestic Equity Securities
This investment category consists of common stock issued by U.S. corporations and American Depository
Receipts (ADRs) issued by U.S. banks. Common stock and ADRs are traded actively on exchanges and price
quotes for these shares are readily available. Starting in FY2015, the category also includes the Vanguard
Russell 1000 Growth Index fund and the Vanguard Russell 1000 Value Index fund.
The Vanguard Russell 1000 Growth Index fund (fair value of $48.3 million as of September 30, 2015) seeks
to closely track the Russell 1000 Growth Index, which is considered a gauge of large-cap growth U.S. stock
returns.
The Vanguard Russell 1000 Value Index fund (fair value of $47.4 million as of September 30, 2015) seeks
to closely track the Russell 1000 Value Index, which is considered a gauge of large-cap value U.S. stock
returns.
All investments in this category are classified as Level 1 investments.
Global Asset Allocation Funds
This category consists of the BlackRock Global Allocation fund (BlackRock), PIMCO All Asset Institutional
fund (PIMCO), Stone Harbor Local Markets fund (Stone Harbor) (liquidated during FY2015), and, new in
FY2015, the Vanguard FTSE All World ex-US Index fund.
The BlackRock investment (fair value of $48.9 million and $51.1 million as of September 30, 2015 and 2014,
respectively) seeks to provide high total investment return. It invests in domestic and foreign equities, debt
securities and money market instruments.
The PIMCO investment (fair value of $43.6 million and $49.2 million as of September 30, 2015 and 2014,
respectively) seeks maximum real return, consistent with preservation of real capital and prudent investment
management. It targets solid real (after inflation) returns from a global opportunity of traditional and
alternative asset classes.
The Vanguard FTSE All-World ex-US Index Fund (fair value of $38.9 million as of September 30, 2015)
seeks to track the performance of a benchmark index that measures the investment return of stocks of
companies located in developed and emerging markets around the world, excluding the United States. The
Vanguard FTSE fund was selected to replace the Thornburg International Equity fund (the Thornburg Fund)
due to performance issues and the departure of the Thornburg Fund’s portfolio manager (see Common/
Collective Trust below for further information on the Thornburg Fund).
The Stone Harbor investment was liquidated to cash in FY2015. The liquidation proceeds are being held in
a non-interesting bearing trustee account. The investment had a fair value of $16.8 million as of September
30, 2014.
All funds in this category are actively traded; price quotes for these shares are readily available; and these
assets are classified as Level 1 investments.