08-22-22 CC Packet - Laserfiche WebLink

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DIVERSIFICATION. Reasonable precautions will be taken to avoid excessive investment concentrations to protect the portfolio against unfavorable outcomes within an asset class. Specifically, the following guidelines will be in place: 1) With the exception of fixed income investments explicitly guaranteed by the U.S. Government, no single, individual investment security (i.e., excluding pooled funds) will represent more than 5% of total Portfolio assets. 2) With respect to fixed income investments, the minimum average credit quality of these investments will be investment grade (Standard & Poor’s BBB or Moody’s Baa or higher). 3) Cash investments will, under normal circumstances, only be considered as temporary portfolio holdings, and will be used to fund liquidity needs or to facilitate a planned program of dollar-cost averaging into investment in either or both of the equity and fixed income asset classes. REBALANCING. VIAS will seek to rebalance the Portfolio to the target normal asset allocation described above as follows: 1) Utilize incoming cash flow (contributions) or outgoing money movements (disbursements) to realign the current weightings closer to the target asset allocation of the portfolio. 2) To determine the deviation(s) from target weightings, the investment manager will review the portfolio quarterly (March 31, June 30, September 30, and December 31). The following parameters will be applied. a) If any asset class (equity, fixed income, alternatives or cash) within the portfolio is +/- 5 percentage points from its target weighting, the portfolio will be rebalanced. 3) The investment manager may provide a rebalancing recommendation at any time. 4) The investment manager shall act within a reasonable period of time to evaluate variance from these ranges. OTHER INVESTMENT POLICIES. Unless expressly authorized in writing by the Client, VIAS will not engage in the following transactions directly on behalf of the Portfolio: 1) Purchasing securities on margin, or executing short sales, 2) Pledging or hypothecating securities, except for loans of securities that are fully collateralized, 3) Purchasing or selling derivative securities for speculation or leverage, 4) Engaging in investment strategies that have the potential to amplify or distort the risk of loss beyond a level that is reasonably expected given the objectives of the Portfolio. * VIAS expects to invest the Portfolio in mutual funds and other pooled funds that may employ strategies that include short selling, securities lending, derivatives and leverage. 11