The Legacy Fund Board will administer the portfolio of the Legacy Fund of the Church of the Resurrection in accordance with these guidelines, as adopted and amended from time to time.  These guidelines shall be reviewed at least annually by the Board to determine whether they shall be amended or remain unchanged.  The Board may choose to employ an outside investment manager.
 
Objectives
 
The assets of the Legacy Fund are to be invested with the same care, skill, and diligence that a prudent person would exercise in investing institutional Legacy funds.  The primary objective will be to achieve a reasonable total return on the assets, while limiting the risk exposure to ensure the preservation of capital.
 
Policies

The Board will make investment decisions in accordance with the objectives stated above.  The "prudent person rule" shall be the governing policy in making investments.  These guidelines are not intended to restrict or impede the efforts of the Board to attain the Legacy Fund objectives nor is it intended to exclude the Board from taking advantage of appropriate opportunities as they arise.  The Board shall have discretion and flexibility to implement the objectives and policies herein set forth.
 
The Board shall establish and maintain an asset allocation to reflect and be consistent with the objectives and policies herein set forth.
 
The Board shall not invest in private placement, letter stock, future transactions, arbitrage and other uncovered options and shall not engage in short sales, margin transactions or other similar specialized investment activities.
 
Asset Allocation
 
Because the security market may vary greatly throughout a market cycle, the Trustees may change the asset mix of the Legacy Fund within the following ranges as long as that mix meets the overall objectives and is consistent with the policy guidelines herein set forth:
 
EQUITIES                    40% - 60%
FIXED INCOME           60% - 40%
RESERVES                    0% - 20%
 
Investment Goals
 
While maintaining the asset mix stipulated above, the investment management will seek to achieve the following goals:
  • An annual return target equal to the rate of inflation, plus at least 3%.
  • Maintain an adequate level of liquidity to assure the ready availablility of funds that have been designated as being expendable.
  • Moderate turnover of the portfolio.  If the turnover appears to be excessive, the Board will take appropriate action to curtail the turnover to a moderate level.
Reporting
 
Included in the quarterly report provided by the Board to the Vestry will be a status report with the fund value, any change in the asset allocation strategy, and the investment performance.  The report shall reflect compliance with the objectives, policies, and guidelines set forth herein.
 
Adopted by action of the Board of the Legacy Fund of the Church of the Resurrection this 13th day of July in 2005.