Statement of Investment Policies and Objectives for the Trustees for the Diocese of Western Massachusetts
TRUSTEES FOR THE DIOCESE OF WESTERN MASSACHUSETTSINVESTMENT POLICY STATEMENTUpdated February 15, 2012Table of Contents PageIntroduction 1Distribution Policy 2Statement of Objectives 3Performance Standards 4Investment Guidelines 5Control Procedures 7Performance Evaluation 8Duties and Responsibilities of Fiduciaries .11Summary and Signatures 14Appendix A (Asset Mix & Investment Return Objectives) 15IntroductionThis document establishes the Statement of Investment Policies and Objectives for the Trustees for the Diocese of Western Massachusetts’ (Trustees) invested assets (“Fund”) as defined below. This Statement has been written in order to assist the Trustees for the Diocese of Western Massachusetts in monitoring and evaluating the investment of the assets of the Fund.
The Board of Managers, and the Finance Committee to the extent authorized by the Board of Managers, is responsible for managing the investment process of the Fund in a prudent manner with regard to preserving principal while providing reasonable returns. The Fund is to be invested on a Total Return basis. The Policy is based upon a long-term investment horizon such that the probability and duration of investment losses are carefully weighed against the long term potential for appreciation of assets after withdrawals are taken.The assets of the Fund are to be invested in a manner that provides the safeguards and diversity that a prudent investor would adhere to. The general instruction is that the investment manager(s) shall exercise such judgment as persons of prudence, discretion, and intelligence exercise in the management of their property and affairs, not in regard to speculation, but in regard to the management of their capital for long-term investment purposes, giving consideration both to the protection of current and future income and the need to preserve the purchasing power of the principal and income This is known as the “prudent man rule” (Harvard College vs. Amory, 9 Pick 446, 461 [1830]).