Investment Policy Statement

Investment Policy Statement


This Investment Policy Statement establishes the philosophy, guidelines and investment objectives for managing the investments of the FUND.


The ultimate responsibility for managing the FUND resides with the Vestry which has chosen to delegate portions of its responsibility to the COMMITTEE, which will administer the portfolio of the FUND in accordance with these guidelines, as adopted and amended from time to time.  These guidelines shall be reviewed at least annually by the COMMITTEE to determine whether they should be amended or remain unchanged.  The COMMITTEE may choose to employ an outside investment manager pursuant to the guidelines established in the enabling resolution.


The assets of the FUND are to be invested with the same care, skill and diligence that a prudent investor would exercise in investing institutional endowment funds.  The primary objective will be to provide long-term growth of principal and income without undue exposure to risk.

Investment Guidelines

Time Horizon                                    

The FUND’S investment objectives and strategic asset allocation are based on a long-term time horizon.

Risk Tolerance:

Because of its long-term time horizon, the FUND can tolerate some interim fluctuation in market value and rates of return in order to achieve its objectives.  High level risk, high volatility and low quality rated securities, however, are to be avoided.

Prohibited Investments:

The COMMITTEE shall not invest in private placement, restricted stock or other illiquid issues, commodities’ futures, arbitrage and other uncovered options, and shall not engage in short sales, margin transactions or other similar specialized investment activities; however, the use of funds that use these investment activities in a constructive manner are permitted at the discretion of the Professional Fund Manager.


Portfolio Diversification:       

The investment objectives should be achieved through a diversified portfolio, which may include but is not limited to, large-cap, mid-cap, small-cap U.S equities, international equities (both developed and emerging markets), bonds and cash. Mutual funds, common trust funds, exchange traded funds, and notes representing any of these asset classes may be used.


Investment Discretion:

These guidelines are not intended to restrict or impede the efforts of the COMMITTEE to attain the FUND’s objectives, nor are they intended to exclude the COMMITTEE from taking advantage of appropriate opportunities as they arise.  The COMMITTEE shall have discretion and flexibility to implement the objectives and policies herein set forth.


Asset Allocation

Because securities markets may vary greatly throughout a market cycle, the COMMITTEE may change the asset mix of the FUND within the following ranges as long as that mix meets the overall objectives and is consistent with the policy guidelines herein set forth. The FUND shall be allocated between equity investments and bonds and/or other fixed income securities.

The strategic target allocation shall be within the following ranges (plus or minus 5%):

Equities:                     40% - 60%

Fixed Income:             60% - 40%

CASH:                          0% - 20%


The target allocation among equity classes shall be determined periodically (and at least annually) by the COMMITTEE in consultation with the investment manager(s) to reflect a prudent response to current market conditions.

Investment Goals

While maintaining the asset mix within the above guidelines, the COMMITTEE accepts a risk level for the FUND’s overall investment program that is intended to produce a total annual return adequate to cover these components:  expenditures from the FUND (as determined annually by the COMMITTEE under the Spending Rule Policy), inflation and growth of the FUND.


The quarterly report provided by the COMMITTEE to the Vestry will include the fund value, any changes in the asset allocation strategy, and the investment performance.  The report shall reflect compliance with the objectives, policies and guidelines set forth herein.


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