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. Growth of the real value of assets, to a modest extent, is a secondary objective.
Documents
Strategic Asset Allocation 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 or risk categories (buckets) as follows:
| Target | Range | Expected Return | |
| Risk Bucket I (low) - Capital Preservation | 15% | 5% - 25% | 5% - 9% |
| Risk Bucket II (medium) - Equities/Value-Added Real Estate |
50% | 35% - 65% | 9% - 12% |
| Risk Bucket III (high) - Alternative Investments |
35% | 20% - 50% | 12% - 18% |
| 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 risk buckets and within risk buckets to the extent deemed necessary to reduce risk/volatility to an acceptable level for the expected return. Investment managers are monitored to assure risk/volatility is within acceptable limits and consistent with expectations. Manager exposure will be controlled so as not to exceed 20% for any one manager.
