TABLE OF CONTENTS PURPOSE OF THE INVESTMENT POLICY STATEMENT 1 INVESTMENT POLICY 2 INVESTMENT OPTION SELECTION GUIDELINES 3 ASSET CLASSES 4 FIXED ACCOUNTS 5 6 MONEY MARKET FUNDS 7 FIXED INCOME FUNDS 8-14 SHORT TERM BOND FUND 8 INCOME – DOMESTIC 9 FIXED INCOME – GLOBAL 11 FIXED INCOME – HIGH YIELD 12 FIXED INCOME –TREASURY INFLATION PROTECTED SECURITIES (TIPS) 13 FUNDS 15-22 LARGE CAP EQUITY 15 MID CAP EQUITY 16 SMALL CAP EQUITY 18 INTERNATIONAL AND GLOBAL EQUITY FUNDS 20 EMERGING MARKETS FUNDS 21 EQUITY INDEX FUNDS 22 FUNDS 23 SPECIALTY 24 REAL ESTATE INVESTMENT (REIT) 24 USE OF CONSULTANTS AND OTHER SERVICE PROVIDERS 25 RESPONSIBILITY AND PERIODIC REVIEW 26 VOTING OF PROXIES 27 AMENDMENT AND TERMINATION 27
Stable Value Objective A Stable Value fund is a type of separately managed account or commingled trust investing in high quality, short to intermediate-term fixed income securities presenting minimal interest rate and credit risk. Unique accounting features allow for loss amortization over a period of time, allowing management to invest in longer-term fixed income assets while mitigating risk. Stable Value funds are generally structured to maintain a $1.00/share NAV. Possible Performance Benchmark(s) Hueler Stable Index or benchmark that most appropriately reflects the manager style within this particular asset class Typical Investor Profile Investors who seek to preserve principal and produce income. Investors who are currently evaluating investment options before determining their appropriate asset allocation. Investors moving to more conservative investments in anticipation of retirement. Investment Strategy A Stable Value fund is a type of separately managed account or commingled trust investing in high quality, short to intermediate-term fixed income securities presenting minimal interest rate and credit risk. Investment Selection Guidelines Multiple criteria, both quantitative and qualitative, may be used in selecting a stable value fund. Such quantitative criteria may include, but are not limited to Crediting Rate/Yield, Market to Book Ratio, Average Credit Quality of Portfolio, Wrap provider insurer diversification, average duration of securities in the portfolio, and Sector Allocations. Qualitative criteria may include, but not limited to Management team composition and tenure, and Management firm experience and stability. MONEY MARKET FUNDS Objective Money Market Funds seek to provide preservation of capital, liquidity, and a level of current income consistent with the other objectives.
Investors who seek higher income potential than with a money market fund, those who want to maintain a hedge against inflation, or who desire to balance more aggressive investments with one providing potentially steady income. Investment Strategy The fund will invest primarily in inflation-indexed bonds issued by the U.S. Government, its agencies and instrumentalities, and corporations. Investment Selection Guidelines Fund net assets of at least $100 million or more years of investment history, if available. Average credit quality of A or better by Standard and Poor’s or Moody’s. Returns should approximate or exceed the total return of the benchmark for rolling 5-year periods at reasonable levels of risk. FIXED INCOME INDEX FUNDS Objective Fixed Income Index Funds seek long-term capital appreciation through passively investing in a portfolio designed to provide a return approximately equal to the performance of an unmanaged index. Index funds seek to minimize expenses by avoiding the costs associated with active portfolio management. Performance Benchmark(s) Barclays Capital US Aggregate Bond Index or such other index that most appropriately reflects the strategy Typical Investor Profile Investors who want returns that should approximate those of specific sectors or total market segments of the U.S. debt markets with reduced expenses. Investment Strategy Index funds should invest in fixed income securities that will produce returns approximately equal to the return on the associated market indices. These funds should minimize management fees, transactions costs, and other expenses whose presence would cause shortfalls in performance relative to the underlying indices. Investment Selection Guidelines