For funds where the directors can dictate distribution rates.

The amount available for current year distributions will be limited to seventy percent (70%) of the prior year’s endowment distribution, increased by the CPI percentage (not to drop below 0%), plus thirty percent (30%) of the two year’s prior year-end market value multiplied by the long-term draw rate of 5%.  The board of directors applies the rights given by state law to use prudent discretion and the Power to Adjust where applicable to certain donor-restricted funds.

The target percentage of equity and fixed income assets (fixed shall include money market assets) shall be 65% and 35%, respectively, with a range from 70/30% to 60/40%.  Individual category allocation will be established and periodically reviewed and updated by the directors and communicated to the investment managers.  The investment in specific vehicles will be determined by the investment managers.  The equity investment shall consist of various market segments, e.g., large cap, mid cap, small cap, international, etc.  The investment of fixed income assets shall be focused on maintaining their principal value rather than taking investment actions based on interest rate expectations.   

The directors will monitor the investment performance on a quarterly basis and the retention or discharge of the investment manager(s) will be considered annually.  The performance target will generally be considered as annual asset growth net of fees, new gifts, and annual distributions.  The objective will also be evaluated in light of inflation.