Company: TVC
Filing Date: 2025-11-13
Form Type: 10-K
Source: 0001376986-25-000056
Chunk: 172

Company: Tennessee Valley Authority
Filing Date: 2025-11-13
Form: 10-K
Item: Item 8
Chunk 172
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 invests in commingled funds, which include collective trusts, unit investment trusts, and similar investment funds that predominantly hold debt and/or equity securities as underlying assets.  The pension plan's ownership consists of a pro rata share and not a direct ownership of an underlying investment.  These commingled funds are valued at their closing NAVs (or unit value) per share as reported by the managers of the commingled funds and as supported by the unit prices of actual purchases and sale transactions occurring as of or close to the financial statement date.  These funds have not been classified in the fair value hierarchy in accordance with FASB guidance issued in May 2015. 

    The pension plan is invested in equity commingled funds, which can be categorized as either passively managed index funds or actively managed funds.  The equity index funds seek to track the performance of a particular index by replicating its capitalization and characteristics.  Passive fund benchmark indices include the Russell 1000 index and MSCI ACWI ex-U.S. index.  The actively managed equity funds seek to outperform certain equity benchmarks through a combination of fundamental and technical analysis.  Active funds select portfolio positions based upon their research.

    The pension plan is invested in debt commingled funds, which can be categorized as either passively managed index funds or actively managed funds.  The pension plan's debt index fund invests in a diversified portfolio of fixed-income securities and derivatives of varying maturities to replicate the characteristics of the Bloomberg Barclays Capital U.S. TIPS.  The fund seeks to track the total return of the Bloomberg Barclays Capital U.S. TIPS index.  The actively managed debt funds seek to outperform certain fixed-income benchmarks through fundamental research and analysis.  The funds invest in a diversified portfolio of fixed income securities and derivatives of varying maturities.  Varying by strategy, fund objectives include achieving a positive relative total return through active credit selection and providing risk management through desired strategic exposures.

    The pension plan's investments in equity and debt commingled funds can generally be redeemed upon notification of the investment managers, with required notice periods varying from same-day to monthly.  These investments do not have unfunded commitments. 

    Institutional Mutual Funds.  Investments in institutional mutual funds are valued at prices based on their NAV.  Institutional mutual funds have daily published market prices that represent their NAV (or unit value) per share and are classified as Level 1.

    Cash Equival