Summary of
Investment Policy Statement
Balanced Pool-Actively Managed Accounts
Revised June 3, 2005

The purpose of this investment policy statement is to establish a clear understanding of the investment objectives for The Greater Cincinnati Foundation (GCF) and to provide guidelines for any investment managers retained.  This policy statement includes the performance standards that will be utilized by the GCF Investments Committee in monitoring investment performance on a continuing basis.

Overall

The primary objective of the investments for GCF is to seek long-term growth of principal and income without undue exposure to risk.

Asset Allocation

It is the responsibility of the GCF Investments Committee, as ratified by the Governing Board, to set long-term asset allocation ranges and review such from time to time.

The responsibility of investment managers shall be to advise the Board if the parameters provided in this policy are inappropriate to achieve the Board’s investment objectives.

GCF has set its equity range to be no more than 80% and not less than 60%. Likewise, the fixed income range shall be a minimum of 20% and no more than 40%. 

The acceptable asset allocation ranges are illustrated below:

Asset Class Acceptable Range
Domestic Equity - Large 35 - 55 %
Domestic Equity Small/Mid 10 - 30 %
International   5 - 20 %
Total Equity 60 - 80 %
Fixed Income 20 - 40 %
Total 100 %

The investment manager will have discretion with regard to asset allocation within the specified range, keeping in mind the benchmarks described below.  Additionally, the manager will have discretion as to the particular holdings of the account within the guidelines and restrictions that follow.  However, consistent underperformance may result in less discretionfor the investment manager.

Performance Measurement
 
Due to the inevitability of short-term market fluctuations which may cause variations in investment performance, it is intended that the following objectives will be achieved by the investment manager over a 5-year rolling average, net of investment management fees.

Individual managers within each asset class will be measured vs. the appropriate index and will be expected to meet or exceed the performance of the index and style specific peer group median (net of fees) within the 20% maximum volatility level as measured by Beta and Standard Deviation.

The investment manager shall exceed the return for a balanced index comprised of:

                         60% Russell 3000 Index
                         15% MSCI EAFE Index
                         25% Lehman Brothers Aggregate Bond Index

To receive the complete The Greater Cincinnati Foundation Investment Policy Statement or to discuss further, please contact Minda Thompson, Director of Professional Advisor Relations or call 513-768-6136.

The Greater Cincinnati Foundation | 200 West Fourth Street | Cincinnati, Ohio 45202 | (513) 241-2880