“The only way to deal with dynamic change is to give it shape.”
(Zbigniew Brzezinski)

Investment Policy Development Documentation of Goals and Guidelines:

• Creates the foundation for the prudent management of investment funds.
• Provides the basis for future performance evaluations of the fund.
• Defines return objectives and risk tolerance levels.
• Incorporates the appropriate asset allocation policy.
• Identifies what is expected of the investment manager(s).
• Defines prohibited transactions.

The investment policy statement is divided into five sections:

Section I – Investment Responsibilities
These are the responsibilities of the Committee, the investment manager and the consultant, so that sound and prudent decisions can be made.

Section II – Investment Objectives
The objectives are desired results and ones that cannot be guaranteed. We have focused on investment objectives relative to inflation and the proposed disbursement schedule where possible.

Section III – Investment Policy
Policies can be controlled and monitored. It is through policy selection that we hope to optimize the likelihood of meeting our objectives. The principal component of policy, as we define it, is asset mix or the percentage of assets invested in various classes of securities.

Section IV – Investment Guidelines and Restrictions
These are the parameters within which we, as the Committee, and our consultant should operate in executing the investment policy and monitoring our program.

Section V – Review Procedures
These policies define the scope and depth of monitoring the investment managers against quantifiable objectives as defined in the Investment Policy and Investment Guidelines.

© 2004 Alpha Investment Consulting Group, L.L.C.
111 E. Kilbourn Avenue, Suite 1600, Milwaukee, WI 53202
Phone: (414) 319-4100 Email: info@alpha-investment.com