Page 198 - 2024 Orientation Manual

The allocation mix is based upon market value and consequently the Manager
is expected to structure and monitor the portfolio based on this valuation.

The Committee will inform the Manager as soon as practical of anticipated
additions or withdrawals from its portfolio. The Manager will be free to
determine the most appropriate use for cash additions within the established
guidelines and will similarly determine the most appropriate manner in which
to raise case for withdrawals.

Asset Class Guidelines

Equity Guidelines
Only the following categories of securities are permissible investments:
 U.S. common stock;
 U.S. securities convertible into common stocks;
 Securities listed on the major U.S. securities exchanges (NYSE, AMEX,
National OTC); and
 Cash or cash equivalents

Additionally:
 The target asset mix should be 55% equity, with a maximum equity
commitment of 60%, and a minimum commitment of 50%;
 No more than 7% of the equity portfolio, at market (including convertible
securities) can be invested in any one company;
 No more than 30% of the equity portfolio, at market, can be invested in any
one industry;
 All of the equities purchased for the portfolio should have a minimum
market capitalization of $1 billion;
 The volatility (as measured by portfolio beta and standard deviation) of the
equity component of the fund cannot exceed the volatility of an index
developed by combining appropriate indices weighted as to the policy
(equity) mix;
 Cash reserves shall be invested in interest bearing securities (including
money market funds), free of risk of loss and price fluctuation, and shall
have immediate liquidity; and
 Convertible securities shall be included with common stocks for purposes
of asset allocation.

Fixed Income Guidelines
Only the following categories of bonds are permissible investments:
 Debt securities issued or guaranteed by the United States Government, its
agencies or instrumentalities;
 U.S. Preferred Stock;
 Corporate bonds, debentures and other forms of corporate debt obligations,
rated BBB or higher (or, if not rated, deemed to be of at least S/S quality by
the Manager);

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