Page 204 - 2019 Orientation Manual

Fixed Income yes

Cash Equivalents yes

As indicated above, The Total Fund, Fixed Income, and Cash Equivalents will
all be measured against the 90-Day US Treasury Bill return for the selected
period.

Asset Allocation Objectives
The Association’s assets will be managed as a total portfolio having (2) major
components:
 a fixed income portion comprised of bonds (domestic); and
 cash equivalent securities.

The following asset guidelines are recommended:

Central
Portfolio Segment Range of Portfolio Assets Tendency

Fixed Income Securities 0% - 100% 50%
Cash Equivalents 0% - 100% 50%

Fixed Income Guidelines
Only the following bonds and/or fixed income securities are permissible
investments:
 debt securities issued or guaranteed by the United States Government, its
agencies and instrumentalities;
 corporate bonds, debentures and other forms of corporate debt obligations,
rated BBB or higher; and
 certificates of deposit or bankers’ acceptances of U.S. banks, but only in
amounts not to exceed that of FDIC Insurance, currently $250,000.00.

Additionally, 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.

3. CORE INVESTMENTS/RESERVES
The Association’s core investments/reserves shall be managed in a manner
consistent with the following statements:
 The Association believes that in order to achieve its desired balance of
principal protection and return on investment, it will be best served by a mix
of equity and fixed-income investments; and
 The Association will determine the style of investment philosophy desired
from the Manager it hires.