Domestic Stock Fund (DSF)
Type of Fund: U.S. stock fund.
Objective: To attain long-term capital appreciation available from a broadly diversified portfolio that primarily includes stocks of the 3,000 largest U.S. domiciled publicly owned companies.
Who Should Invest: Investors who seek long-term investment growth through exposure to the broad U.S. stock market and who are willing to accept the risk of possible wide fluctuations in the unit price of the fund.
Investments: The fund's investments consist primarily of stocks of companies based in the United States. The fund may also invest in U.S. shares of companies that are domiciled outside of the United States. The fund will hold stock index futures necessary to maintain exposure to the U.S. stock market. The fund may also invest in publicly traded Real Estate Investment Trusts (REITs), and approximately 10% of its assets may be invested in alternative investments such as private real estate partnerships and private equity.
Management: More than 20 different investment management firms selected by the General Board, including Barclays Global Investors.
Strategy: The fund employs a blended use of passive and active investment management. View recent DSF asset allocation by investment style.
For passive management, the fund includes investments that are designed to closely match the performance of various indexes representing different market segments. An index fund holds all, or a representative sample, of the securities that make up its target market index.
For active management, the fund employs different investment management firms to make decisions about the fund's portfolio investments. The fund relies on the professional judgment of its investment managers to seek investments in attractively valued companies that, in their opinion, represent good long-term investment opportunities. The fund primarily employs investment managers that will accomplish this objective through fundamental analysis, including meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the adviser no longer believes that they represent attractive investment opportunities or when the securities represent too large of a position in the portfolio.
Performance Benchmark: Russell 3000™ Index (the largest 3,000 U.S. domiciled companies based on market value as of June 30 of each year).
Performance Objective: To outperform the performance benchmark by 75 basis points per year, on average, over a market cycle of three to five years.
For more detailed information regarding the Domestic Stock Fund, please see the Investment Funds Description.
Fund Performance:
Fund Market Value (as of 9/30/09): $5,315,666,043.
Annual Performance at Year End, Net of Fees
| |
Domestic Stock Fund |
Russell 3000 Index |
| 2008 |
-34.5% |
-37.3% |
| 2007 |
6.3% |
5.1% |
| 2006 |
15.3% |
15.7% |
| 2005 |
5.4% |
6.1% |
| 2004 |
11.6% |
11.9% |
| 2003 |
30.9% |
31.1% |
| 2002 |
-21.7% |
-21.5% |
| 2001 |
-11.6% |
-11.5% |
| 2000 |
-7.3% |
-7.5% |
| 1999 |
21.6% |
20.9% |
| 1998 |
23.8% |
24.1% |
| 1997 |
- |
31.8% |
| 1996 |
- |
21.8% |
| 1995 |
- |
36.8% |
| 1994 |
- |
0.2% |
| 1993 |
- |
10.9% |
Compounded Annual Performance, Net of Fees (periods ending 9/30/09):
| Returns |
Domestic
Stock
Fund |
Russell
3000
Index |
| QTR |
13.3% |
16.3% |
| YTD |
17.6% |
21.2% |
| 1 Yr. |
-8.5% |
-6.4% |
| 2 Yrs. |
-13.7% |
-14.3% |
| 3 Yrs. |
-4.4% |
-5.1% |
| 5 Yrs. |
1.8% |
1.6% |
| 7 Yrs. |
6.7% |
6.5% |
| 10 Yrs. |
0.8% |
0.7% |
| Inception |
2.9% |
2.8% |
|
|
| Volatility (standard deviation*) |
Domestic
Stock
Fund |
Russell
3000
Index |
| 3 Yrs. |
17.9% |
20.1% |
| 5 Yrs. |
15.0% |
16.5% |
| 10 Yrs. |
15.8% |
16.5% |
* In finance, standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility (risk).
|
All returns for the Domestic Stock Fund are net of all fees and expenses which include all investment management fees, operating expenses and bank custodial fees. The fund inception was January 1, 1998.
Fund Characteristics (9/30/09)
| |
Domestic Stock Fund |
Russell 3000 |
| Wgt Mkt Cap ($MM) |
46,070 |
63,746 |
| P/E |
29.9 |
27.4 |
| P/B |
2.2 |
2.1 |
| Dividend Yield |
1.5 |
1.9 |
| 5 Yr. ROE |
18.4 |
19.3 |
| # of Stocks |
2,130 |
2,968 |
Fund Holdings
| Top-Ten Stock Holdings |
| |
Fund % |
| Apple |
1.64% |
| Microsoft |
1.41% |
| Exxon |
1.16% |
| Google |
1.15% |
| JP Morgan Chase |
0.97% |
| Cisco |
0.97% |
| Qualcomm |
0.93% |
| Johnson & Johnson |
0.80% |
| Goldman Sachs |
0.77% |
| Proctor & Gamble |
0.75% |
Fund Holdings (As of 9/30/09): Download/view fund holdings in PDF format.
Expense Ratio: The General Board will charge participants in the Domestic Stock Fund annual expenses equal to approximately 0.65% of total fund assets. This cost includes investment management fees, operating expenses, and bank custodial fees.
Lending of Portfolio Securities: The fund seeks to earn additional income by making loans of its portfolio securities to brokers, dealers and other financial institutions. The loans will be secured at all times by cash and liquid high grade debt obligations. As with any extension of credit, there are risks of delay in recovery and in some cases even loss of rights in the collateral should the borrower fail financially. Additionally, losses could result from the reinvestment of the cash collateral received on loaned securities.
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