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ASSET ALLOCATION AND POLICY:
The asset allocation guidelines were established to reflect an investment risk posture appropriate to the Foundations.
Accordingly, the Foundation will allocate assets among investment managers to achieve the following guidelines:
| Type of Asset |
Lower Limit |
Long Term Target |
Upper Limit |
Representative Index |
| Cash |
1% |
2% |
5% |
30 Day U.S. Treasury |
Domestic Large
Cap
Growth Style
Value Style
|
30%
15%
15%
|
40%
20%
20%
|
50%
25%
25%
|
S&P 500
|
Domestic Small
Cap Equities |
10% |
12% |
20% |
Russell 2000 |
| International (ADR's) |
10% |
12% |
20% |
MSCI EAFE |
| Alternatives |
10% |
10% |
15% |
HFRI's Conservative
Fund of Funds Index |
| Fixed Income |
20% |
24% |
30% |
Lehman Bros.
Government/Corporate
Intermediary Index |
Assets shall be invested with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person acting in a like capacity and familiar with such matters, would use in investing the assets of like character and kind.
Assets shall be structured to meet the liquidity requirements of the Foundations.
Notwithstanding any other guidelines, the portfolio shall be managed with an overall balanced (growth and income) orientation.
In the event any asset class reaches its maximum allocation, the investment manager(s) are prohibited from allocating additional assets to the asset class. However, the investment manager(s) are not required to sell securities in the event the asset class exceeds its maximum allocation. Similarly, if an asset class falls below its minimum allocation due to market movements, the manager(s) may not reduce the allocation to the asset class, but are not required to allocate additional assets to the asset class to reach its minimum allocation.
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