112101-112300 - Investments

This account group includes investments owned by an agency for the purpose of earning income on fund cash not immediately needed for operations. Investments and pooled investments include deposits held by the State Treasurer in certain long-term investment portfolios as well as investments held separately by the State and its component units. Investments are generally reported at fair value. The net increase (decrease) in the fair value of investments is recognized as a component of investment income.

Investments Outside the State Treasurer

This account subgroup includes investments held outside the State Treasurer.

  • 112101 U.S. Government Guaranteed Securities or Obligations
  • This account consists of securities issued by the U.S. Treasury and other U.S. governmental agency, i.e., Federal Home Loan Bank, Federal Loan Bank, Government National Mortgage Association (GNMA), and Federal National Mortgage Association (FNMA). Examples of the types of securities classified within this account would be notes, bonds, or other debt instruments which are issued by these U.S. governmental agencies.
     
  • 112102 State and Municipal Debt Securities Fund
    The type of securities reported in this account notes, bonds, or other debt instruments issued by any State or its political subdivision (county, city, etc.).
  • 112103 Corporate Bonds
    Securities reported within this account are bonds issued by a U.S. corporation. Some examples of these types of bonds are debentures (unsecured bonds) and convertible debentures (convertible bonds). convertible debenture will be recorded to this account until it is converted to stock.
  • 112104 Corporate Stocks
    The types of securities reported in this account usually represent ownership interest possessed by shareholders in a U.S. corporation. Some common examples of these types of securities are common stock, preferred stock, and convertible preferred stock.
     
  • 112105 Repurchase Agreements (REPO)
    An agreement in which a governmental entity (buyer-lender) transfers cash to a broker-dealer or financial institution (seller-borrower); the broker-dealer or financial institution transfers securities to the and promises to repay the cash plus interest in exchange for the same securities. These agreements usually involve federal government obligations and are often executed on an overnight basis.
     
  • 112106 Commercial Paper
    This instrument is a short-term obligation with a maturity that can range from 2 to 270 days which is issued by banks, corporations, and other borrowers to investors with temporarily idle cash. Such instruments are unsecured and usually discounted, although some are interest bearing. This type of instrument can be issued directly or through a broker. Almost all commercial paper is rated as to credit risk by rating services.
  • 112107 Bankers' AcceptancesBankers' acceptances generally are created based on a letter of credit issued in a foreign trade transaction. Bankers' acceptances are short-term, non-interest-bearing notes sold at a discount and redeemed by the accepting banks at maturity for face value.
  • 112108 Annuity Contracts
    A form contract sold by life insurance companies that guarantees a fixed or variable payment to the annuitant at some future time usually at retirement.
  • 112109 Investment in Real Estate
    This account is to be used to record land and all physical property related to it that is owned by state agencies and universities for investment purposes (e.g., endowment fund properties).
  • 112110 International Bonds (Corporate)
    The type of securities reported in this account are bonds issued by a corporation whose corporate charter and main corporate headquarters are located outside the United States. Examples of these types of bonds are debentures (unsecured bonds) and convertible debentures (convertible bonds).
  • 112111 International Bonds - (Government)
    The type of securities reported in this account are notes, bonds, or other debt instruments issued by governments outside the United States.
  • 112112 International Stocks
    The type of securities reported in this account consists of stocks issued by a corporation whose corporate charter and main corporate headquarters are located outside the United States. Examples of these types of stock are common, preferred, and convertible preferred.
  • 112113 Certificates of Deposits
    This account consists of all certificates of deposits (CD's) which are either negotiable or non-negotiable.
     
  • 112114 Investment Agreements
    There are general obligation instruments issued by insurance companies or other companies that are not financial institutions that provide for a guaranteed return on pricipal over a specified period.
  • 112115 Bank Investment Contracts
    There are general obligation instruments issued by banks or other financial institutions that provide for a guaranteed return on principal over a specified perion. The deposits in these contracts are typically subject to federal insurance.
  • 112116 Money Market Funds
    This account is to be used when an agency has a Money Market Fund at a financial institution. Money Market Funds are in effect an open-ended Mutual Fund that invests in various highly liquid securities. Such funds usually offers check writing privileges but funds are not federally insured.
  • 112117 Mutual Funds
    This account consists of funds operated by an investment that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. These funds offer the investor the advantage of diversification and professional financial management.
  • 112118 Real Estate Investment Trust (REIT)
    To account for investments with a company operating a Real Estate Investment Trust (REIT). A portfolio of real estate is managed in order to earn profits for its shareholders. The investment in these REIT's represent a share of ownership in the trust, not a parcel of real estate.
  • 112119 Limited Partnerships
    This account consists of investments in limited partnerships. Public limited partnerships are typically sold through brokerage firms where as private limited partnerships are put together with fewer than 35 limited partners who invest more than $20,000 each. Some typical limited partnerships are in real estate, oil and gas, movie financing, research and development, and venture capital.
  • 112120 Reverse Repurchase Agreements
    An agreement in which a broker-dealer or financial institution (buyer-lender) transfers cash to a governmental entity (seller-borrower); the entity transfers securities to the broker-dealer or financial institution and promises to repay the cash plus interest in exchange for the same securities.
  • 112121 Cash with Fiscal Agent (See "Cash and Cash Equivalents")
  • 112122 Investments with Fiscal Agent
    This account includes various investments in an investment account maintained by a fiscal agent.
  • 112123 Pooled Investments (Internal Pools managed by Banks)
    This account is to be used when the fund that the university places with a bank are pooled together with other depositors' money and these funds are invested in investment pools that are managed and operated by the banks (e.g.: life income pools). The internal investments pools reported under this account are not openly traded mutual funds.
  • 112124 Collateral Mortgage Obligation
    A security created using the underlying cash flows from mortgage-backed securities as collateral. A CMO shifts the uncertainty regarding the exact timing of principal return in a mortgage-backed security. This uncertainty exists because the timing of mortgage principal payments is influenced by changes in interest rates, the current economic climate, and the geographic makeup of loans.
  • 112150 Allowance-Fair Value Investments
    This account is used to record the adjustment from cost to fair value for investments outside the State Treasurer and not held by a fiscal agent.
  • 112151 Allowance-Fair Value Investments with Fiscal Agent
    This account consists of investments that do not meet the definition of the above identified accounts.
  • 112190 Other Investments (Outside the State Treasurer)
  • 112191 Investment Derivatives - Current
    A derivative instrument that is entered primarily for the purpose of obtaining income or profit, or a derivative instrument that does not meet the criteria of a hedging derivative instrument. See acct 129700 for a definition of hedging derivatives.

Investments - Current Restricted

See the Restricted Assets Policy for a comprehensive definition and the policy on restricted assets. When restricted assets are being used to repay maturing debt or other accrues liabilities, the appropriate poriton of each should be treated as a current asset and a current liability. To report the debat as current, but the restricted assets that will be used to repay it as noncurrent, would distort working capital.

  • 112125 Restricted Investments
  • 112152 Allowance-Fair Value Restricted Investments

Pooled Investments

This account subgroup includes investments with the State Treasurer.  

  • 112205 Short Term Investment Pool (for use by State Treasurer only) 
    This account consists of the Retirement System’s investments (cost basis) associated with its units of ownership in the Treasurer’s Pool. This acct will roll with Pooled Investments-current.

  • 112210 Long-Term Investment Pool
    This account consists of the Pension Funds' Investments (cost basis) associated with its units of ownership in the Treasurer's Pool. (For Pensions Only)
     
  • 112211 Long-Term Investment - Global Transpark
    This account should be used by the State Treasurer only.
     
  • 112215 Bond Index Fund
    This account consists of long term fixed income investments of participants other than the seven pension plans which make up the North Carolina Retirement System.
     
  • 112216 Equity Index Fund
    This account consists of equity security investments of participants other than the seven pension plans which make up the North Carolina Retirement System.
     
  • 112220 Equity Investment Fund
    This account consists of the Pension Fund's Investments (cost basis) associated with its units of ownership in the Treasurer's pool. (For Pensions Only)
     
  • 112230 Real Estate Investment Fund
    This account consists of the Pension Fund's investments (cost basis) associated with its units of ownership in the Treasurer's pool.
     
  • 112240 Venture Capital Investment Fund
    This account consists of the General and Highway Funds' investments (cost basis) associated with its units of ownership in the Treasurer's pool.
     
  • 112241 Inflation Protection Investment Fund
    An investment fund with the State Treasurer consisting of investments in inflation linked bonds, timberlands, commodities, and other assets that are acquired for the primary purpose of providing protection against risks associated with inflation. The enabling legislation for this fund is from G.S. 147-69.2(b)(9a) authorizing alternative investments up to $100,000,000 not  exceeding 5% of the market value of all invested assets of the Retirement Systems.  For year-end GAAP financial reporting, this account is classified with the pooled investment fund accounts of the State Treasurer.
     
  • 112242 Credit Investment Fund
    An investment fund with the State Treasurer consisting of investments in obligations and other debt securities including debt securities convertible into other securities. The enabling legislation for this fund is from G.S. 147-69.2(b)(6c) authorizing alternative investments up to $100,000,000 not  exceeding 5% of the market value of all invested assets of the Retirement Systems.  For year-end GAAP financial reporting, this account is classified with the pooled investment fund accounts of the State Treasurer.
     
  • 112243 External Fixed Income Investment
    An investment portfolio that is part of the State Treasurer’s External Investment Pool.  For year-end GAAP financial reporting, this account is classified with the pooled investment fund accts of the State Treasurer.
     
  • 112250 Bond Proceeds - Restricted
    This account consists of investments of the State general obligation bond proceeds subject to Federal arbitrage regulations. It is classified as restricted investments for financial statement presentation.
     
  • 112260 Investments - External Units
    This account consists of the equity in the Treasurer's pool associated with units of ownership by entities outside the State's reporting entity and reported in the Investment Trust Fund.
     
  • 112280 Allowance-Fair Value of Pooled Investments
    This account is used to record the adjustment from cost to fair value for the Long-term Investment Pool.
     
  • 112281 Allowance-Fair Value of Equity Investment Fund
  • 112282 Allowance-Fair Value of Real Estate Investment Fund
  • 112283 Allowance-Fair Value of Venture Capital Investment Fund
  • 112284 Allowance-Fair Value of Limited Partnerships Fund
  • 112285 Allowance-Fair Value of Inflation Protection Investment Fund
  • 112286 Allowance-Fair Value of Credit Investment Fund
  • 112287 Allowance-Fair Value of External Fixed Income Investment
  • 112288 Allowance-Fair Value of Bond Index
  • 112289 Allowance-Fair Value of Equity Index Fund
  • 112300 Security Lending Collateral Investment Pool