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The Endowment

Statement of Investment Guidelines

Aggregate Portfolio Allocation

1. No investment manager shall hold more than 10% of endowment assets.
2. No single holding may exceed 5% of the aggregate portfolio.
3. Tactical allocation in compliance.
4. Strategic allocation in compliance.
5. Broad diversification by manager style and asset class.
6. Long-term equity and equity-like orientation (at least 80% theoretical maximum).

Asset Class Compliance

1. Domestic and International Equity - long only
   1. Prohibition on options and futures.
   2. Prohibition on illiquid positions without permission of the Committee.
   3. Employ index or ETF as needed as substitute for active managers or for rebalancing.
   4. No single holding may exceed 10% of manager portfolio without express permission, excluding co-mingled funds.
2. Fixed Income
   1. Corporate issues (commercial paper in top two ratings) in top four credit quality ratings by recognized credit services. Express permission required for lower rated holdings.
   2. Prohibition on options and futures without express permission.
   3. Prohibition on illiquid positions without express permission.
   4. Duration within 2 years of Lehman Brothers Aggregate.
3. Alternatives
   1. Hedge Funds
   1. Sufficient diversification in number of managers (at least 12).
   2. Low correlation of 5-year performance between managers.
   3. Sufficient diversification in aggregate underlying strategies (no more than 50% allocated to a single strategy).
   4. Sufficient diversification among hedge managers (no single manager may comprise more that 20% of hedge program).
   1. Venture Capital/Buyouts/Private Equity
   1. Diversification by vintage year, by firm, by stage and by strategy, with approach of "dollar cost averaging" over long time periods.
   2. Liquidate distributions of securities upon receipt.
   3. Employ secondary funds or fund-of-funds opportunistically to maintain sufficient exposure to venture capital.
   1. Real Assets
   1. Diversification among managers, geographic orientation, property type, strategy and vintage year.
   1. Temporary Investments/Cash
   1. Credit quality in top ratings (A-1/P-1)
   2. No more than 5% in a single issuer.
   3. Up to 50% of temporary investments may be invested in a multi-asset class "endowment surrogate"

Revised: August 2005