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1. ERISA Standards. Although these accounts are not subject to ERISA requirements, it is expected that investments will be selected and managed in accordance with the fiduciary standards of ERISA, that is:
a) In the sole interest of the Foundation:
b) With the care, skill, prudence and diligence under the circumstances then prevailing that a prudent man acting in a like capacity and familiar with such matters would use in the conduct of an enterprise of a like character and of like aims; and
c) By diversifying the investment so as to minimize risk of large losses.
2.Discretion. Subject to restrictions listed in sub-section B and C of this Section, and consistent with the Purpose and Investment Objectives of the Foundation, the Investment Manager(s) shall have the full discretion as to the asset mix between equities, fixed income and cash equivalents, and any other asset classes which have been specifically approved by the Board of Trustees, diversification among individual securities, economic and industry sectors, selection of individual securities and portfolio turnover.
3.Liquidity.The Board of Trustees will monitor the Foundation's cash flow on a regular basis, and sufficient liquidity shall be maintained to fund benefit payment outflows. When withdrawals become necessary, the Board of Trustees will notify the Investment Manager(s) as far in advance as possible to allow them sufficient time to build up necessary liquid reserves. The Investment Manager(s) will be expected to review the cash flow requirements with the Board of Trustees at least annually.
4.Volatility.Consistent with the desire for adequate diversification, Investment Policy for the Foundation is based on the assumption that the volatility of the portfolio will be similar to that of the market. Consequently, it is expected that the volatility of the total portfolio, in aggregate, will reasonably match that of a balanced market index weighed to match the actual asset mix of the Foundation.
5.Trading and Execution Guidelines. The Investment Manager(s) shall have the discretion to execute securities transactions with brokerage firms of their choosing; based upon the quality of execution rendered, the value of research information provided, the financial health and integrity of the brokerage firm, and the overall efficiency in transacting securities trades. However, the Board of Trustees retains the right to direct brokerage commissions subject to best execution. When the Investment Manager(s) directs commission on behalf of the Board of Trustees and Foundation, direction will be contingent upon the institution being competitive in both price and execution for the specific transaction.
It shall be the policy of the Foundation to invest in assets in accordance with the maximum and minimum range for each asset category as described below:
100% Fixed Income Portfolio
Moderate Portfolio
Aggressive Portfolio
The asset-mix policy and acceptable minimum and maximum ranges established by the Board of Trustees represent a long-term view. As such rapid and significant market movements may cause the Foundation's actual asset mix to fall outside the policy range. Any such divergence should be of a short-term nature.
1.Types of Securities. Equity securities shall mean true no-load mutual funds or individual common stocks. (Note: mutual funds must meet ethical guidelines as described in section V, part A.
2.Diversification. The equity portfolio should be well diversified to avoid undue exposure to any single economic sector, industry group or individual security. The overall goal is to diversify the equity portion among the following stock classes that may include indexing to the S&P 500, the small capitalization market, value style stocks, growth style stocks, and international stocks.
3.Quality and Marketability. The equity portion of the portfolio will invest in selected mutual funds or individual common stocks. Such mutual funds or mutual fund managers must have at least a three-year performance history (manager performance with another fund or institution will be considered for performance history), no front-end sales charges, and no redemption fees. Any exceptions to the above must be approved by the Board of Trustees.
1.Types of Securities. Fixed income securities shall mean marketable debt securities issued by either the United States Government, or agencies of the United States Government, domestic corporations, including industrials and utilities, insurance companies, and domestic banks and other United States financial institutions.
2.Quality. Only issues that are of investment grade, that is rated “BBB” or above by Moody's or “Baa” and above by Standard & Poor's, shall be purchased, except for issues held by no-load mutual funds which may not exceed a maximum non-investment grade holding of 5% of the total individual portfolio Foundation's assets.
3.Concentration by Issuer. Investments in any one issuer (excluding obligations by the U. S. Government and Federal agencies fully guaranteed by the U. S. Government, mutual funds and collective trusts) or in any one issue shall not exceed 10% of the fixed income portfolio based on market value at time of purchase. Any exceptions to the above must be approved by the plan trustees.
1.Types of Securities. Short term investments consist of fixed income securities maturing in one year or less at time of purchase. Issues include Certificates of Deposit, Commercial Paper, U. S. Treasury Bills, bankers acceptances, repurchase agreements and money market funds. Issues may be in the U. S. Government, or agencies of the United States Government, domestic corporations, including industrials and utilities, and domestic banks and other FDIC insured United States financial institutions.
2.Quality. Only fixed income securities that are rated investment quality shall be purchased. Commercial paper is to be at least Standard and Poor's rated “A-2” or Moody's “P-2” . The underlying issuer of commercial paper is to have at least an “A” rating by the above noted rating services. Certificates of deposit, bankers acceptances, bank money market funds, and repurchase agreements are restricted to issuing banks with an “A” or higher rating.
Investments must comply with guidelines set forth in Appendix A. In addition, categories of investments, which are not eligible for investment without prior approval of the Board of Trustees, include:
Short sales.
Margin purchase or other use of lending or borrowing.
Private placements.
Commodities.
Individual Foreign securities.
Security loans.
Unregistered or restricted stock.
Warrants.
Real Estate Mortgages.
Real Estate Equity.
Options or futures. (Except for covered calls) |
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