Amtrak 2013 Annual Report Download - page 98

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National Railroad Passenger Corporation and Subsidiaries (Amtrak)
Notes to Consolidated Financial Statements (continued)
1411-1359280 59
13. Postretirement Employee Benefits (continued)
Securities Money Market Fund in the significant accounting policies section of the report, which
states that, “Each Fund has elected to use the amortized cost method of valuation pursuant to
Rule 2a-7 under the 1940 Act provided that certain conditions are met, including that the Fund’ s
Board of Trustees continues to believe that the amortized cost valuation method fairly reflects
the market based NAV per share of the Fund.” Investments in money market funds are classified
as Level 2 assets as of September 30, 2013 and 2012.
Real Estate Investment Trust
This category consists of an investment in the Morgan Stanley Prime Property fund. The fair
value of the investments in the Prime Property Fund has been estimated using the NAV of the
Plan’ s ownership interest (units) in the partner’ s capital. The investment in the Prime Property
Fund can be redeemed on a quarterly basis but with no guarantee that cash will be available at
any particular time to fund the redemption request. If the cash is not available, the redemption
will be deferred at the discretion of the fund manager until sufficient cash is available. As of
September 30, 2013 and 2012, there were no unsatisfied redemption requests. Investments in real
estate investment funds are classified as Level 2 assets as of September 30, 2013 and 2012.
Global Assets Allocation Funds
This category consists of BlackRock Global Allocation Class I fund (“BlackRock”), PIMCO All
Asset Institutional fund (“PIMCO”), and Stone Harbor Local Markets fund (“Stone Harbor”).
The BlackRock investment (fair value of $47.3 million and $42.7 million at September 30, 2013
and 2012, 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 $46.8 million and $43.0 million at September 30, 2013 and 2012, 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 Stone Harbor investment (fair value of $17.6 million and
$17.2 million at September 30, 2013 and 2012, respectively) seeks to maximize total return,
which consists of income on its investments and capital appreciation. Stone Harbor normally
invests at least 80% of its net assets in Emerging Markets Investments. “Emerging Markets
Investments” include fixed income securities and derivative instruments that are economically
tied to an emerging market country and are denominated in the predominant currency of the local
market of an emerging country, or whose performance is linked to those countries’ currencies,
markets, economies or ability to repay loans. These investments are actively traded; price quotes
for these shares are readily available; and these assets are classified as Level 1 investments.