Laserfiche WebLink
Duration <br /> The manager will maintain the portfolio duration within+/- 25%of the Bloomberg US Aggregate <br /> Bond Index duration at all times for the individual securities portfolio. <br /> Diversification <br /> • No more than 30%of the portfolio may be invested in securities issued under Rule 144A* <br /> without registration rights (no limit on Rule 144a securities with registration rights). <br /> * Note: Rule 144A is an administrative rule under the SEC allowing, under certain circumstances, for <br /> qualified institutional investors to trade certain securities with other institutional investors without <br /> registering the trade with the SEC. Specifically,the rule allows private companies, both domestic and <br /> international,to sell unregistered securities, also known as Rule 144 securities,to qualified institution <br /> buyers (QIBs) through a broker-dealer. <br /> OTHER ASSETS (ALTERNATIVES) <br /> Alternatives may consist of non-traditional asset classes such as hedge funds, private equity,private debt <br /> and real assets, when deemed appropriate. The total allocation to this category may not exceed 30% of <br /> the overall portfolio. <br /> Diversifying Liquid Alternatives): Primary objective shall be to enhance the risk-return profile of the <br /> overall portfolio. This can be accomplished by using liquid alternative strategies that may enhance <br /> returns at a reasonable level of risk or reduce volatility while providing a reasonable level of return. <br /> These asset classes may differ from traditional public market asset classes due to the use of certain <br /> strategies including short-selling, leverage, and derivatives. Liquid alternatives may also invest across <br /> asset classes. For purposes of asset allocation targets and limitations, liquid alternatives funds will be <br /> categorized under the specific asset class of the fund. For example, a long/short U.S. equity fund will <br /> be categorized as "Other' in the Growth Assets category while a long/short credit fund will be <br /> categorized as"Other'in the Income Assets category.Multi-strategy liquid alternatives funds that cannot <br /> be easily categorized under one asset class will be included in "Other" under either the Growth Assets <br /> or Income Assets category depending on the risk-return profile of the strategy. <br /> Real Assets: Real assets are typically physical assets that have intrinsic worth due to their substance and <br /> properties. Real assets are primarily used for their lower correlation to traditional assets (i.e. stocks and <br /> bonds) and their inflation hedging properties. Categories of real asset investments include, but are not <br /> limited to, real estate, infrastructure, land, farmland, timberland, precious metals, and commodities. <br /> Public real assets are publicly traded and liquid. The benefit of lower correlation investments is that, <br /> when implemented correctly, these investments can potentially improve a portfolio's expected risk- <br /> adjusted return over the long-term. The real assets category can be extended to include other forms of <br /> assets that offer similar inflation hedging properties such as pooled vehicles holding: commodities <br /> contracts, Treasury Inflation Protected Securities ("TIPS"), index-linked derivative contracts, certain <br /> forms of intellectual property,and the equity of companies in businesses thought to hedge inflation. For <br /> purposes of asset allocation targets and limitations, real assets may be categorized as "Other" under <br /> 9 <br />