KENTUCKY STATE UNIVERSITY
Notes to the Financial Statements, continued
The University has the following recurring fair value measurements as of June 30, 2016:
| Total | Level 1 | Level 2 | Level 3 |
|---|
| Money market funds | $ 905,632 | $ 905,632 | $ - | $ - |
|---|
| Fixed income | 5,366,206 | 5,366,206 | - | - |
|---|
| Common stock | 6,852,828 | 6,852,828 | - | - |
|---|
| Mutual funds: | | | | |
|---|
| Alternative strategies | 1,360,530 | 1,360,530 | - | - |
|---|
| Real estate funds | 888,418 | 888,418 | - | - |
|---|
| $ 15,373,614 | $ 15,373,614 | $ - | $ - |
|---|
The University had the following recurring fair value measurements as of June 30, 2015:
| Total | Level 1 | Level 2 | Level 3 |
|---|
| Money market funds | $ 1,175,640 | $ 1,175,640 | $ - | $ - |
|---|
| Fixed income | 3,768,269 | 3,768,269 | - | - |
|---|
| Common stock | 7,602,320 | 7,602,320 | - | - |
|---|
| Mutual funds: | | | | |
|---|
| Alternative strategies | 2,050,995 | 2,050,995 | - | - |
|---|
| Real estate funds | 986,234 | 986,234 | - | - |
|---|
| $ 15,583,458 | $ 15,583,458 | $ - | $ - |
|---|
All securities classified in level 1 of the fair value hierarchy are valued using prices quoted in active markets for those securities.
The University's average credit quality rating according to Moody's is Aa3.
Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The University does not have a formal policy to specifically limit investment maturities as a means of managing its exposure to fair value losses arising from increasing interest rates.