The Episcopal Diocese of Southwestern Virginia 100th Annual Convention

B. CASH EQUIVALENTS & SHORT-TERM INCOME The cash equivalents & short term income class is limited to institutional quality commingled funds, or separate accounts consisting of obligations of the US Treasury, Federal agencies and investment grade corporate issues including bonds, debentures, and notes maturing within two years. Investment grade securities shall have a rating of “BBB” or higher from Standard & Poor’s or Baa3 from Moody’s. C. FIXED INCOME INVESTMENTS The fixed income class is limited to institutional quality commingled funds or separate accounts consisting of obligations of the US Treasury, Federal agencies and investment grade corporate issues including bonds, bonds issued by any municipality, governmental subdivision or issuing authority, debentures, and notes. Marketability should be considered in the selection of individual issues. Investment grade securities shall have a rating of “BBB” or higher from Standard & Poor’s or Baa3 from Moody’s. D. EQUITY INVESTMENTS Equities are publicly traded common stocks of companies. For purposes of asset allocation the following publicly traded investments may be included in the equities asset class: securities convertible into equities, such as convertible debentures and convertible preferred stock; American depository receipts for equities; and mutual funds. • Investments in Small Capitalization Companies may be made, but only via mutual funds that do not invest in companies with market capitalization of less than $100 million. Such Small Cap mutual fund investments shall be limited to no more than 10% of the Pooled Endowment Fund at cost. • Investments in foreign stocks shall only be permitted via mutual funds. The total investment in foreign stock mutual funds foreign stocks shall be limited to no more than 10 15% of the Pooled Endowment Fund at cost. ADRs are not included in this 10% 15% limit. • Investments may be made into Exchange Traded Funds with a maximum total of no more than 10% of the Pooled Endowment Fund at cost in any individual Exchange Traded Fund . The Exchange Traded Funds aggregate investment is limited to a maximum of 25% of the Pooled Endowment Fund at cost. • Investments made in Real Estate shall be limited to Real Estate Investment Trusts (REIT’s). The total of such investments shall be limited to no more than 5% 10 % of the Pooled Endowment Fund at cost. The underlying real estate investments in such REIT’s shall be limited to domestic properties. • The restrictions identified above shall not be exceeded by combining categories or by taking the higher of overlapping limits. The most restrictive interpretation should be adhered to. • The market capitalization of individual companies in which investments can be made shall be no less than $500 million.

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