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 Exercising complete investment discretion over the assets, which shall be
allocated in accordance with this Investment Policy Statement;
 Investment of Association’s assets with care, skill, prudence and diligence;
 Expedite sale of any security purchased outside of guidelines; and/or
expedite purchase of any security which by downgrading falls below these
guidelines. Board or Governors or its designee shall give manager
discretion to sell at any time within a 30-day period of notification. If a
disposed security is a result of an original purchase outside of the guidelines,
account shall be made whole by the Manager. Whole is defined as original
book value of investment plus daily interest until date of disposition;
 Voting of all proxies of securities held, as delegated by Board or its
designee;
 Keeping Board and/or its designee informed on all material matters
pertaining to the investment policies and management of the Association’s
assets; and
 Providing to the Board and/or its designee, no less than seven days in
advance of any conference, all documents, exhibits, written materials, etc.
related to the Association’s investments and their performance.

Each manager shall:
 Be covered by liability and fiduciary insurance; and
 Have its employees bonded unless otherwise exempt by law or
governmental regulation.

2. OPERATING ASSETS
The Association’s Operating Assets shall be managed in fixed income securities
and cash equivalents with maturities not to exceed one year so as to meet its
short-term liquidity requirements. The LSBA Director of Administration shall
furnish the Investment/Portfolio Manager with a schedule of anticipated
withdrawals for the Association’s operations.

Investment Objective
The primary financial objective in the management of the Operating Assets is
safety of principal followed by a competitive return as compared to its
benchmark.

Investment performance will be reviewed quarterly. It is not anticipated that
the goals defined below will be satisfied in every quarter of year. It is, however,
expected that performance goals will be met over a rolling three-year period.
Analysis of performance should always be within the context of the prevailing
investment environment and the Manager’s particular investment style.

The investment performance will be evaluated relative to the following index
and standard:

Index

24