Details for Investment Manager | ||
Investment Manager |
BlackRock45 Fremont Street, 34th FloorSan Francisco, CA 94105 |
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Asset Class and Objective | Core foreign stock fund | |
Fund Benchmark | MSCI World (excluding U.S.) Index | |
Management Type | Passively Managed | |
Marketing Company | None | |
Management Fee | A flat asset based fee of 0.02%. | |
Restrictions on Transfers | Investment funds in the FRS Investment Plan are subject to excessive trading restrictions as detailed in the FRS Investment Plan Summary Plan Description and FRS Excessive Fund Trading Policy. | |
Fees and Expenses | Fees and expenses are only one of several factors that should be considered when making investment decisions. More information on fees and expenses can be found in the FAQs on the MyFRS.com website. | |
Investment Philosophy | BlackRock' (BTC) objective in managing the fund is to deliver a high quality and cost-effective index-based portfolio to institutional investors. | |
Research Process | See Security Selection and Portfolio | |
Security Selection | Full replication is used to invest in all of the index securities to minimize tracking error. | |
Portfolio Construction | BTC builds their international index funds on a regional/country basis and fully replicates the holdings of the MSCI World (excluding U.S.) Index. Futures and OptionsBTC does not use futures to add value; futures are used only to decrease tracking error. Futures contracts are employed within the collective funds to "equitize" cash flows. These flows are generated from dividends and other cash flows associated with securities in the portfolio. Futures contracts are purchased to provide immediate market exposure proportionate to the size of both cash flows and residual cash within the portfolio. The goal is to reduce the overall portfolio tracking error that would be incurred should cash remain uninvested in the portfolio. Cash in excess of 0.15% would be equitized using EAFE and country futures contracts. Securities LendingBlackRock' philosophy on borrower selection is to concentrate their lending to highest credit quality borrowers of those who meet stringent capital, financial and risk requirements and who are able to meet their obligations within the terms of the lending contract. Their risk management controls include:
As a result of their risk controls, neither BTC nor their clients have ever experienced a loss due to collateral reinvestment, operational negligence or broker default. |
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Sell Discipline | Not applicable. | |
Portfolio Manager(s) | ||
Name | Investment Experience | Experience Last 5 Years |
Amy Schioldager | 19 years | Head, U.S. Indexing, GIMG, at BTC since 1989 |
Ed Corallo | 19 years | Head, Institutional Indexing, at BTC since 1997 |
Amy Schioldager | 16 years | Senior Portfolio Manager, at BTC since 2000 |