Investment Objectives Information
Total Return/Limited Volatility
The Trust’s primary investment objective is to achieve the total return necessary to maintain “real value” of assets, with limited risk/volatility, over a long period of time so that the Trust may function in perpetuity without diminished capacity. To a modest extent, growth of the real value of assets is a secondary objective.
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Actual Allocations Strategic Asset Allocation
To achieve the long-term goal, the Trust has adopted an efficient strategic asset allocation that envisions a reasonably stable distribution of assets among asset classes as follows:
| Target | Range | Expected Return | |
| Risk Bucket I (low) | 15% | 5% - 25% | 5% |
| Risk Bucket II (medium) | 50% | 35% - 65% | 9% - 10% |
| Risk Bucket III (high) | 35% | 20% - 50% | 14% - 15% |
| Total | 100% |
Deviations from target, within the range, will be permitted without action and generally are the result of transitioning in and out of asset classes and short-term performance variations. Deviations outside the range should result in adjustments in cash flow or other actions to move toward the target allocation within a reasonable period of time.
Diversification/Risk Control
To control risk and minimize volatility, the Trust will diversify among asset classes and within asset classes to the extent deemed necessary to reduce risk/volatility to an acceptable level for the desired return. Investment managers are monitored to assure risk/volatility is within acceptable limits and consistent with expectations.
