VCOM Institutional Policy and Procedure Manual

VCOM Policy and Procedure

Policy #B003

Consultant, and will be consistent with the investment objectives, policies, guidelines, and constraints as established in the statement. Specific responsibilities of the Consultant: a. Assisting in the development and periodic review of investment policy b. Monitoring the performance of the Investment Manager(s) to provide the President and CFO with the ability to determine the progress towards the investment objectives c. Communicating matters of policy, fund research, and fund performance to the President and CFO d. Reviewing plan investment history, historic capital markets performance and the contents of this investment policy statement with the President and CFO 8.3 Responsibility of Investment Manager(s) Each Investment Manager will have full discretion to make all investment decisions for the investments placed under his or her jurisdiction, while observing and operating within all policies, guidelines, constraints, and philosophies as outlined in the statement. Specific responsibilities of the Investment Manager(s) include: a. Discretionary investment management including decisions to buy, sell, or hold individual securities, and to alter asset allocation within their guidelines b. Voting proxies on behalf of VCOM 9. INVESTMENT GUIDELINES 9.1 Allowable Assets for “Long Term Reserves”  Definition of Long Term Reserves– funds that are not expected to be needed within three 5. Pooled investment vehicles such as mutual funds or Exchange Traded Funds (ETFs) with short term maturity profiles (average duration less than 1 year) b. Fixed Income Securities 1. Treasury Bill 2. Money Market Funds 3. Commercial Paper 4. Certificates of Deposit 5. Notes and Bonds of U.S. governmental agencies or the Treasury 6. Investment Grade Corporate and Municipal Bonds 7. Investment Grade International Bonds 8. Bonds rated below BBB-/Baa3 (non-investment grade) 9. Agency issued Mortgage Back Securities 10. Pooled Investment vehicles such as mutual funds or Exchange Traded Funds (ETFs) that focus on fixed income instruments c. Equity Securities years of being invested a. Cash Equivalents 1. Treasury Bill 2. Money Market Funds 3. Commercial Paper 4. Certificates of Deposit

1. Equity Mutual Funds and individual common stocks 2. Investment Grade Convertible Bonds and Notes 3. Investment Grade Convertible Preferred Stocks 4. American Depository Receipts (ADRs) of Non-U.S. Companies

VCOM Investment Policy

Page 5 of 7