The Episcopal Diocese of Southwestern Virginia 100th Annual Convention

A secondary comparison (or benchmark) shall be established to measure the success of a more diversified asset allocation contemplated by this Endowment Policy Statement and weighted as outlined below: The account shall be compared against an index weighted of (1) Treasury Bills, (2) the Barclays Capital US Aggregate Bond Index, and (3) an equal weighting of the Russell 3000 and MSCI ACWI. The weighting of the index shall be in the same proportion as the Asset Allocation targets. The return should be above the median of a generally accepted universe of similar funds. Each investment manager should report performance of the investments relative to these goals at each quarterly meeting with the Trustees. C. EQUITY The equity portion of the Fund will be compared against the S&P 500. D. FIXED INCOME The fixed income portion of the fund will be compared against the Barclays Capital US Aggregate Bond Index or its equivalent.

VII. ENCUMBRANCE PROHIBITION

No part of the Fund may be pledged, hypothecated, encumbered, or used as collateral.

VIII. DOCUMENTATION: INVESTMENT MANAGEMENT

A.

Each The investment manager shall follow the policies contained herein and shall submit a written statement describing its proposed investment strategy and tactics for achieving the investment objectives in this policy statement. Each The manager shall inform the Executive Committee whenever the manager’s investment strategy changes significantly or whenever assessment of current market conditions indicates a change is needed in any policy contained herein.

B.

Each The Investment manager shall supply statements quarterly.

C.

In periodic meetings with the Executive Committee, each the Investment manager shall review the investment returns of the fund relative to the standards of performance and the manager’s investment strategy and tactics as described in Section VI. B above . Such meetings shall be held on a quarterly basis .

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