The Episcopal Diocese of Southwestern Virginia 100th Annual Convention

E. DIVERSIFICATION There should be diversification among economic or market sectors, industries, and individual issuers so as to minimize the risk of loss. No single issue shall, at any time, represent over 5% of the equity investments at cost. Investments in any economic sector shall not represent more than 2 times the corresponding sector within the S&P 500. The fixed income class and the equities class may contain non-US investments provided such investments otherwise comply with the restrictions of Section G below. F. QUALITY In general terms, securities should be well recognized in their respective industries, and of good quality. G. INVESTMENT RESTRICTIONS The Trustees may impose restrictions on the types of investments or on the investment vehicles that may be utilized from time to time. The following are the current restrictions that the Trustees wish to impose. The Trustees may also waive any of the following restrictions for a specific period of time, following discussion with the Investment Manager and such waiver must be in writing to the Investment Manager: • No investments shall be made into bond mutual funds. • No investments shall be made into foreign bonds. • No investments shall be made into commodities or in companies whose primary purpose is to trade in commodities. • No investments shall be made into so-called “Hedge” funds. • No investments shall be made into stocks of “Closely Held Businesses” or "Private Equity Companies". • No investments shall be made into "Options" or any other “Derivative” investment vehicles. A. GENERAL Primary consideration will be given to the performance of the Fund over a full economic or market cycle or over a three-to-five year period, whichever shall be longer. B. MINIMUM GOALS The fund shall be compared against an index weighted of (1) Treasury Bills, (2) the Barclays Capital US Aggregate Bond Index, and (3) the S&P 500. The weighting of the index shall be in the same proportion as prescribed for the Long Term Strategic Allocation of the three asset classes in paragraph V. A. above (the Episcopal Index). STANDARD OF PERFORMANCE

VI.

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