Long Term Investment Fund

The Long Term Investment Fund ("Fixed Income") can invest in debt issued by the United States Government, or its agencies, corporations, or pools of mortgages issued by a government sponsored agency, such as the Federal National Mortgage Association (Fannie Mae), or the Federal The Home Loan Mortgage Corporation (Freddie Mac).  The North Carolina Retirement System only invests in investment grade debt, which are corporate obligations that have received one of the four top ratings from one of the major rating agencies.  The North Carolina Retirement System makes direct investments in fixed income securities through professionals in the Investment Division.

In fixed income, the North Carolina Retirement System would expect to earn about the coupon or yield on a diverse portfolio of investment grade bonds.  In an environment where interest rates are falling, we would expect to see higher returns generated by modest capital gains, while a rising interest rate environment would be expected produce lower returns.  The North Carolina Retirement System does not invest in non-investment grade or junk bonds.

*Holdings are released at fiscal year end