The Custodian of the Endowment Funds shall be a responsible trust company or a bank with trust powers and shall be selected by the Board of Trustees. Custodial services are specified by written agreement, with the expectation that funds will be invested with care, skill, prudence, and diligence. The asset mix of the Endowment Funds should be an ongoing concern of the Finance Committee. This Committee should once each year set goal for asset mix between Equity Investments, Fixed Income Securities, and Other Investments. Equity Investments Investments in particular industry or company securities are to be based upon prospects for above average return over a five-year period.
Emphasis is to be placed on capital appreciation and growth of earnings.
Investments are to be made primarily in well established, quality companies whose securities enjoy marketability adequate for the portfolio. Quality is not synonymous with size or recognition. At the time of investment, the Custodian of Endowment Funds will not invest more than five percent of the net assets of the fund, in securities of organizations with less than a three-year operating record. The Custodian is to concentrate no more than 20 percent of the market value of the fund in any single industry and no more than five percent in any single company without prior approval of the Trustee of Endowment Funds at the time of investment. The structure of the bond portfolio and the selection of individual securities are matters subject to the discretion of Trustees of Endowment Funds, developed primarily in response to changing market relationships, interest rate forecasts and economic circumstances.