Portfolio Quality. At least 85% of invested assets of the Portfolio shall be investment grade assets (including cash and cash equivalents, bonds and commercial mortgages); the target weight of these assets shall be 90%. If an asset has two ratings, the higher rating shall be used to determine its status as investment grade. The remainder of the Portfolio, with a target allocation of 10% and a limit of 15%, may be invested in assets that are rated below Baa3 or BBB-, or its equivalent ("Below Investment Grade Assets"). If the Portfolio holdings of Below Investment Grade Assets exceed this limit due to downgrades, the Portfolio may not acquire additional Below Investment Grade Assets and may hold Below Investment Grade Assets in excess of this limit until valuation and opportunities for sale provide good value. Compliance will be determined by reference to Nationally Recognized Statistical Rating Organization ("NRSRO"), Dominion Bond Rating Service or Canadian Bond Rating Service ratings (in the case of public bonds), by such ratings for private placements where available, otherwise by internal Prudential ratings unless the designation assigned by the Securities Valuation Office of the National Association of Insurance Commissioners implies a lower rating, in which case the middle of the relevant rating category (and A/A2 for NAIC 1) will be used. For commercial mortgages, internal Prudential ratings will be used. Overall quality for the public investment grade portfolio will be within two numeric notches using Xxxxx'x ratings of the average rating of the Xxxxxx Corporate Index (i.e., if the initial average rating is A2, the range would be from Aa3 to Baa1). In the absence of Moody's ratings, Prudential will select an alternative NRSRO rating agency and notify the Subscribers. In the absence of the Index, Prudential will select another index and notify the Subscribers. The Portfolio may only invest in public or private fixed income securities, including but not limited to fixed and floating rate securities, commercial mortgages, derivatives, short-term securities with a remaining maturity of one year or less and certain open-end funds that (i) invest primarily in short-term debt instruments, (ii) meet the conditions of paragraphs (c)(2), (c)(3) and (c)(4) of Rule 2a-7 under the Investment Company Act of 1940 (as amended from time to time) and (iii) are issued by an investment company registered under the Investment Company Act of 1940 or by an exempt issuer.
Portfolio Quality. (a) With respect to the Included Leases, the Weighted Average Debt Rating of all of the Lessees thereunder is at least Baa2, based on ratings assigned by Xxxxx'x, or the equivalent based upon ratings assigned by another Rating Agency.2 "
Portfolio Quality. STATEMENT OF POLICY The quality target for the overall fixed income bond portfolio is A3/A- (Xxxxx'x/S&P). The overall fixed income bond portfolio includes the following sectors: Corporates, Governments and Government Related, and Structured Products. All fixed income securities held by the Trust will be denominated and payable in US dollars. MACRO SECTOR ALLOCATIONS / LIMITS Investments Policy Committee (IPC) will monitor sector allocations to Fixed Income Investments on a quarterly basis CONTROLS AND PROCEDURES Compliance is the responsibility of the CIO. PERIODIC REVIEW Portfolio quality will be calculated by corporate accounting and reported as part of the quarterly financial statements. PORTFOLIO RATING METHODOLOGY CUSIP level security ratings will be aggregated to determine the overall portfolio rating quality for the fixed income bond portfolio using the following order of priority and will be weighted by STAT book value: Security rating based on rating agency (Xxxxx'x/S&P/Fitch) will use the following logic:
