The Fixed Return Fund offers a guaranteed rate of return set by the New York State Legislature in accordance with applicable laws. The current annual rate is 7% for members who are serving in (or resigned/retired from) titles represented by the United Federation of Teachers (UFT) and 8.25% for other members.
The Diversified Equity Fund invests primarily in the stocks of U.S. companies, and also invests a portion of its assets in stocks of non-U.S. companies and other types of investments that may exhibit fixed-income characteristics. The objective is to achieve a rate of return comparable to the return of the broad equity market.
The Bond Fund invests primarily in a portfolio or portfolios of high-quality bonds that provide for participant transactions at market value. The objective is primarily to seek current income from a diversified portfolio of high-quality bonds.
The International Equity Fund invests primarily in the stocks of non-U.S. companies located in developed markets, traded on a variety of stock exchanges, and denominated in a variety of currencies around the world. The objectives are to provide long-term capital growth and to achieve a rate of return comparable to the return of the non-U.S. equity markets over a full market cycle.
The Inflation Protection Fund invests in multiple asset classes and markets, including fixed income, alternative bond strategies, and securities. The objective is to provide, over a full market cycle, a real rate of return that exceeds inflation.
The Socially Responsive Equity Fund invests in stocks of large and mid-cap U.S. and non-U.S. companies that meet certain financial and social criteria. The fund attempts to avoid companies that derive a substantial revenue from alcohol, tobacco, nuclear power, or weapons. The objectives are to achieve, over a full market cycle, positive long-term capital growth and to earn a rate of return comparable to the return of the broader equity market while reflecting social priorities.