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Investment Plan
The following investment plan has been adopted by the Board and may be amended as necessary:
Policy
The Trust shall be invested to provide safety through diversification in a portfolio of common stocks, bonds, cash equivalents and other investments, which may reflect varying rates of return. The overall rate of return objective for the portfolio is a reasonable "real" rate consistent with the risk levels established by the Board.
The investments shall also be diversified within assets classes (e.g. equities shall be diversified by economic sector, industry, quality, and size). Portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance.
Investment Objectives
| Return: |
The Long-term (ten or more years) return objective shall be to exceed the Discount rate (7.5%) used in the Actuarial valuation. In addition, over a full market cycle the return should meet or exceed the return of the market, defined as the asset allocation policy applied to the S&P 500, MSCI EAFE, and the Lehman Brothers Aggregate Bond indices. |
| Risk: |
The objective is to mitigate the risk of capital loss through diversification. In addition, the portfolio should experience volatility of returns commensurate with the market. The market is defined as the portfolio's asset allocation policy applied to the S&P 500 index, MSCI EAFE, and the Lehman Brothers Aggregate Bond indices. |
September 30, 2007 |
| Rate of Return |
Last Quarter |
YTD |
Since Inception |
| Total Fund - Last Quarter |
3.0 |
9.3 |
8.6 |
Portfolio Allocation |
|
|
|
| Fund Name |
Market Value |
% Allocation |
% Target |
| Pzena Large Value |
$4,293,320 |
13.8% |
15% |
| Delaware Growth |
$4,776,175 |
15.3% |
15% |
| Frontegra SMID |
$4,731,420 |
15.2% |
15% |
| EuroPacific Growth |
$5,358,738 |
17.2% |
15% |
| Pimco Total Return |
$12,010,509 |
38.5% |
40% |
| Cash |
$0 |
0% |
0% |
| Total |
$31,170,160 |
100% |
100% |
|
