§ 3.12.130. Limitations on Managers' Portfolios.

A.

Equities. No more than five percent or the weighting in the relevant index (Russell 3000 for U.S. issues and MSACI ACWI ex-U.S. for non-U.S. issues) of the total equity portfolio valued at market may be invested in the common equity of any one corporation, ownership of the shares of one company shall not exceed five percent of those outstanding, and not more than forty (40) percent of equity valued at market may be held in any one sector, as defined by the Global Industry Classification Standard (GICS).

a.

Domestic Equities: Other than these constraints, there are no quantitative guidelines as to issues, industry or individual security diversification. However, prudent diversification standards should be developed and maintained by the Manager.

b.

International Equities: The overall non-U.S. equity allocation should include a diverse global mix that is comprised of the equity of companies from multiple countries, regions and sectors.

B.

Fixed income. Fixed income securities of any one issuer shall not exceed five percent of a total bond portfolio at time of purchase. The five percent limitation does not apply to issues of the U.S. Treasury or other Federal Agencies. The overall rating of the fixed income assets shall be investment grade, based on the rating of one Nationally Recognized Statistical Rating Organization ("NSRO").

C.

Other Assets (Alternatives). Alternatives may consist of non-traditional asset classes such as real estate and commodities, when deemed appropriate. The total allocation to this category may not exceed twenty (20) percent of the overall portfolio. Prior to adding an allocation to any of the following asset classes, with the exception of publicly-traded mutual fund vehicles, the Advisor shall receive approval from the District.

a.

Real Estate: Consists of publicly traded Real Estate Investment Trust ("REIT") securities and real estate funds with an income orientation. For purposes of asset allocation targets and limitations, publicly traded REITs will be categorized as "Other" under Growth Assets and an income-oriented real estate fund will be categorized as "Other" under the Income Assets.

b.

Inflation Hedge: Shall consist of pooled vehicles holding assets investments such as: Treasury Inflation Protected Securities ("TIPS"), commodities or commodity contracts, index-linked derivative contracts, certain real estate or real property funds and the equity of companies in the businesses thought to hedge inflation. For purposes of asset allocation targets and limitations, inflation hedge assets will be reported in the Real Return Asset category.

( Res. No. 2015-8-4, § 1(Policy No. 8.6), 8-25-2015 ; Res. No. 2018-9-2 , § 1, 9-25-2018)