Investment Guidelines (Basic and Concise)

INVESTMENT GUIDELINES FOR:

_________ Endowment Account
Established Date

The guidelines are as follows:
.
Funds may be invested in domestic and foreign securities to include common stocks, preferred stocks, investment grade bonds, exchange traded funds (ETF'S) and money market instruments.

There shall be no use of letter stock, private placements, commodities, margin purchase, short sales, futures, derivatives, private equities, collateralized mortgage obligations, interest only obligations, principal only obligations or illiquid securities/investments.
.
Equity investments shall be no less than 40% nor greater than 70 % of the total market value of the account. Fixed income investments shall be no less than 20 % nor greater than 50% of the total value of the account. Cash and equivalents shall be no less than 10% of the total value of the account.
.
Any one individual equity security shall not represent more than 5% of the market value of the account.

Core investments will represent companies with capitalizations typically counted among the S&P 500 Index and the S&P Global 100 Index.

The average life of the bond portion of the portfolio should average no more than seven years. For this calculation, floating rate notes will be viewed as short-term.

Note: This does not preclude purchases of longer term bonds, but shorter term bonds laddered for annual cash flow needs (1,2,3 and 4 year maturities) should lower the average duration to adhere to the guidelines.