I don’t understand this Finance question and need help to study.
In your post about your chosen public state pension plan, include the following:
- Identify the amount of assets held by the plan, the amount of liabilities of the plan, and the percent funded of the plan.
- Identify the amount and percentage of assets invested in fixed income securities and mortgage-backed securities.
- Identify the categories and weights of fixed income securities in the portfolio.
- Identify the weights in the fixed income security portfolio according to bond ratings.
- Identify the duration of the fixed income portfolio.
- Describe the investment strategy for fixed income securities identified by the pension plan.
- Describe the benchmark used by the pension fund for the fixed income securities, and how the pension fund has performed against this benchmark.
- Suggest one change to the fixed income portfolio to enhance the portfolio’s returns, within the guidelines of the stated fixed income portfolio strategy.
- Searching for a Public Pension Plan
- To search for a state public pension plan’s annual report, visit the web page Pension Plan Data (Links to an external site.).
- Search by state to find the name of a state’s public pension plan.
- Once you have chosen a state and a plan, click on that plan.
- See the title PLAN DATA: _______ (name of plan) on the first page.
- See left navigation Menu Items: Plan Basics; Assets, Benefits, and Participants; Costs; Actuarial Funding; Investments; and Cash Flow.
- Click on the link to cash flow.
- Below the cash flow charts, there is a section 20XX Financial Report, which contains a link to the latest annual financial report.
- Click on the link for the annual financial report. It may take several minutes to load the plan document.
- Download the document as a .pdf and easily review the .pdf.
Note: Some states do not provide the annual financial report, but instead, provide an actuarial report. Do not use an actuarial report. Choose another state.For example:
- Search for “Alabama.”
- Choose “Alabama Teachers.”
- Under Cash Flow, there is a section 2018 Financial Report. Beneath it, there is a link to the Comprehensive Annual Financial Report.