KENTUCKY STATE UNIVERSITY
Notes to the Financial Statements, continued
2. Cash, Cash Equivalents, and Investments, continued
The University has the following recurring fair value measurements as of June 30, 2016:
TotalLevel 1Level 2Level 3
Money market funds$ 905,632$ 905,632$ -$ -
Fixed income5,366,2065,366,206--
Common stock6,852,8286,852,828--
Mutual funds:
Alternative strategies1,360,5301,360,530--
Real estate funds888,418888,418--
$ 15,373,614$ 15,373,614$ -$ -
The University had the following recurring fair value measurements as of June 30, 2015:
TotalLevel 1Level 2Level 3
Money market funds$ 1,175,640$ 1,175,640$ -$ -
Fixed income3,768,2693,768,269--
Common stock7,602,3207,602,320--
Mutual funds:
Alternative strategies2,050,9952,050,995--
Real estate funds986,234986,234--
$ 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.
Credit Risk
The University's average credit quality rating according to Moody's is Aa3.
Interest Rate Risk
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.