|
changes in interest rates or currency valuations. The mortgage-backed securities are subject to prepayment risk
when interest rates are falling. Credit risk for derivatives held by the Funds result from the same considerations as
other counterparty risk assumed by the Funds, which is the risk that the counterparty will be unable to meet its
obligations.
The Funds invest in foreign currency forward contracts to hedge the currency risk in its international and
global portfolios. The following summary shows the foreign currency forward contracts outstanding as of June 30,
1997 (amounts expressed hi thousands).
|
Purchases
|
|
|
|
Currency
|
Purchase Amount
(In Local Currency)
|
Fair Value
as of June 30, 1997
|
|
Australian dollar............................................................................................................................................
|
7,574
|
$ 5,679
|
|
Belgian franc..................................................................................................................................................
|
194,281
|
5,419
|
|
Canadian dollar.............................................................................................................................................
|
66,965
|
48,757
|
|
Deutsche mark..................................... ..........................................................................................................
|
277,338
|
159,934
|
|
French franc...................................................................................................................................................
|
292,558
|
50,052
|
|
Irish pound.....................................................................................................................................................
|
2,101
|
3,167
|
|
Italian lira.......................................................................................................................................................
|
73,222,491
|
42,988
|
|
Japanese yen..................................................................................................................................................
|
16,263,891
|
143,236
|
|
Netherlands guilder.......................................................................................................................................
|
46,900
|
24,051
|
|
Polish zloty. ....................................................................................................................................................
|
9,684
|
2,583
|
|
Pound sterling................................................................................................................................................
|
29,967
|
49,792
|
|
Spanish peseta...............................................................................................................................................
|
1,600,000
|
10,887
|
|
Swedish krona.... ...........................................................................................................................................
|
180,000
|
23,340
|
|
Swiss franc.....................................................................................................................................................
|
96,953
|
67,003
|
|
U.S. dollar........................................................
|
1,377,261
|
1,377,261
|
|
Total purchases.....................................................................................................................................
|
|
$2,014,149
|
|
Sales
|
|
|
|
Currency
|
Sale Amount
(In Local Currency)
|
Fair Value
as of June 30, 1997
|
|
Australian dollar............................................................................................................................................
|
91,717
|
$ 68,760
|
|
Austrian schilling.................. .........................................................................................................................
|
9,900
|
808
|
|
Belgian franc..................................................................................................................................................
|
864,000
|
24,131
|
|
Canadian dollar.............................................................................................................................................
|
77,831
|
56,641
|
|
Danish krone..................................................................................................................................................
|
124,109
|
18,796
|
|
Deutsche mark...............................................................................................................................................
|
488,617
|
281,699
|
|
French franc...................................................................................................................................................
|
786,599
|
134,515
|
|
Hong Kong dollar..........................................................................................................................................
|
100,000
|
12,897
|
|
Irish pound.....................................................................................................................................................
|
2,101
|
3,167
|
|
Italian lira.......................................................................................................................................................
|
196,121,437
|
115,111
|
|
Japanese yen..................................................................................................................................................
|
17,458,566
|
153,542
|
|
Netherlands guilder.......................................................................................................................................
|
280,898
|
143,880
|
|
New Zealand dollar.......................................................................................................................................
|
10,614
|
7,182
|
|
Pound sterling................................................................................................................................................
|
145,287
|
241,292
|
|
Spanish peseta...............................................................................................................................................
|
6,395,321
|
43,502
|
|
Swedish krona...............................................................................................................................................
|
118,049
|
15,299
|
|
Swiss franc.....................................................................................................................................................
|
160,954
|
110,966
|
|
U.S. dollar.........................................................................................
|
576,426
|
576,426
|
|
Total sales...............................................................................................................................................
|
|
$2,008,614
|
C. Component Units:
Cash and cash equivalents of the Component Units as of June 30, 1997, was $104,784,000, most of which is
pooled by the State except for $7,166,000. The bank balance of cash deposited with financial institutions was
$8,889,000, of which $8,271,000 was collateralized or insured and $618,000 was uninsured and uncollateralized.
Investment accounts established by higher education institutions relate principally to endowments and trust
accounts required by debt instruments. In general, endowment resources can be invested in debt and equity
securities, and trust accounts can be invested only in debt securities. These investments include U.S. Treasury and
agency obligations, certificates of deposit, commercial paper, repurchase agreements, banker's acceptances and
money market funds.
50
|
 |
