STATEMENT OF INVESTMENT POLICY. The investment policy of the Company, like that of the other portfolios managed for the accounts of Liberty Mutual Insurance Group (“LMIG”), has been formulated with two basic tenets in mind. First, as a property and casualty insurance company, the primary purpose of the investment portfolio is to support the company’s insurance operations and to be consistent with the company’s objectives for long-term financial strength in order to meet its obligations to policyholders. Second, as an insurance company, the preponderance of risk assumed should be in the underwriting of the company’s insurance products, not in the investment of its assets. Within these broad risk parameters, management of the portfolio will focus on maximizing the long-term after-tax total rate of return on invested assets through disciplined asset allocation and security selection, balanced with the need for the portfolio to produce investment income, stable cash flow, and sufficient liquidity. Asset management should also provide safety through adequate diversification of risk, the preservation of principal, and the avoidance of unacceptable levels of asset/liability mismatches. Within this context, individual investment decisions will be based on fundamental economic, financial, credit and security analysis/selection combined with relative value considerations among securities and market sectors. The specific terms and conditions of individual securities and the specific asset’s fit within the total portfolio framework will be evaluated prior to investment. The overall policy will be managed through adherence to a set of broadly defined policy guidelines designed to give the Advisor discretion in meeting portfolio objectives. This investment policy and the investment guidelines, all of which will be reviewed on a periodic basis in conjunction with changing regulatory and business requirements, are subject to the final approval of the Company’s Board of Directors or a duly appointed and authorized committee thereof. The ongoing implementation of the investment policy will be the responsibility of the Advisor through the authority granted by the Company’s Board of Directors. The Advisor consists of the same group of investment professionals responsible for managing the other insurance companies investment assets of LMIG, currently totaling over $50.0 billion. As such, the implementation and maintenance of the investment policy will occur within the same basic framework, as LMIG’s other po...
STATEMENT OF INVESTMENT POLICY. Purpose and Scope A client’s Statement of Investment Policy (“SIP”) is a key component of Client’s personal investment strategy. The purpose of this SIP is to set forth in writing: ● Client’s objectives and goals related to the investment of the assets in Client’s portfolio; ● The asset classes that Advisor may trade and hold in Client’s account; ● The permissible ranges of exposure for Client’s portfolio; and ● Client’s asset allocation and investment guidelines. The information Client provided Advisor is instrumental in creating an investment strategy that best meets Client’s needs. Defining Client’s investment objectives, establishing Client’s risk tolerance and understanding Client’s investment time horizon are key components in developing an effective investment strategy suitable for Client. This SIP is intended to summarize the investment philosophy and the procedures providing guidance for Client and Advisor. The investment guidelines described in this SIP should be updated over time as necessary to reflect Client’s current status and philosophy regarding the investment of the portfolio. Advisor will refer to Client’s SIP as Client’s investments grow and evolve. Advisor will use the criteria listed in Client’s SIP to ensure that the investments selected for Client’s portfolio continue to meet Client’s requirements. If Client’s circumstances or goals change, Client is responsible for contacting Advisor and asking that Client’s SIP be updated to reflect as necessary so that Advisor can reevaluate and adjust the investment strategy for Client’s account appropriately. Investment, Return and Risk Objectives Investment Objectives and Risk Tolerance: Generally, there is a correlation between portfolio returns (either positive or negative) and the amount of risk Client is willing to assume. Clients looking for long-term growth in their portfolio tend to experience high price fluctuations over the short term, and Clients generally need to accept higher portfolio risk if they seek higher returns. Client’s risk tolerance should reflect the amount of risk Client is comfortable with. Client should notify Advisor when there are material changes in his financial condition or risk tolerance. Please check the box that most accurately represents your investment and risk objective. Aggressive Growth Client is not concerned with the level of fluctuation in his portfolio value. Client is prepared to take substantial risk to achieve his investment goal of significantly g...
STATEMENT OF INVESTMENT POLICY. (1) The Committee shall establish a written Statement of Investment Policy in respect to the Amount’s portfolio of investments for approval of the Board. The Committee shall ensure that the Board is regularly made aware of any significant financial risks facing the Foundation, including the consequences of potential significant losses of investments of any or all of the Amount. The Statement of Investment Policy shall be reviewed no less frequently than annually. The Statement of Investment Policy shall include the following components:
