Return = 8% = ($108,000 − $100,000)/$100,000.
The Asset Category investment strategy assumes that the Fund’s beginning value and external cash flows are invested passively in a combination of the designated asset category benchmarks, with the specific allocation to each benchmark based on the fund sponsor’s policy allocation to those asset categories. In essence, this approach is a pure index fund approach. The asset category corresponds to a pure index approach. The dollar return would have been $8,000 or 8% on the initial $100,000.
