UCF Cash and Equivalent Fund Investment Policy Guidelines

1. Permissible investments include high quality, marketable U.S. dollar denominated securities of the types listed below with effective remaining maturities of 397 days or less. High quality, broadly diversified commingled or mutual money market funds made available by the Foundation's custodian bank are also permitted investments. Permission to use comparable funds or other cash equivalents vehicles may be requested from the Investment Committee. Written Investment Committee approval is required before the manager may use cash equivalents vehicles other than those listed below or those made available by the Foundation's custodian bank.
1. Commercial paper of domestic and foreign issuers.
2. Negotiable certificates of deposit, time deposits and bankers acceptances of domestic banks that are subject to regulatory supervision by the United States Government or by state governments, and of foreign banks with branches or agencies in the United States subject to the same supervision.
3. Bonds and notes issued by United States or foreign corporations provided they are not subject to foreign withholding tax.
4. Obligations issued or guaranteed by the United States Government or its agencies or instrumentalities.
5. Obligations issued by foreign sovereign governments or their agencies, instrumentalities, authorities, or political subdivisions.
6. Obligations of international banking institutions authorized by national governments to facilitate economic reconstruction, economic development, or trade between nations.
2. Up to 10% of the market value of the portfolio for which each manager is responsible may be invested in U.S. dollar denominated bonds of issuers located outside the United States.
3. All commercial paper must be rated by at least two of the Nationally Recognized Statistical Rating Organizations (NRSRO's), and must carry the highest rating issued by all NRSRO's that rate the issue. All bonds and notes issued by United States or foreign corporations must be rated "AA" or higher by at least two of the Nationally Recognized Statistical Rating Organizations (NRSRO's). In the event that a commercial paper issue held by a manager has its rating downgraded below the required rating, and/or in the event that the comparable debt of the issuer is downgraded, the manager must liquidate the position or report its inability to do so to the Chief Investment Officer.
4. No single issuer's securities should exceed 5% of each manager's portfolio at current market value. Securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities are exempt from this guideline.
5. Each manager's portfolio should be appropriately diversified. This diversification should be demonstrated in the manager's quarterly report to the Investment Committee. The dollar weighted average maturity of the manager's portfolio together with the manager's stated maturity policy should also be included. Under no circumstances, however, should the average maturity of the manager's portfolio exceed 91 days.

* Because of the ways in which participants are expected to use the UCF Cash and Equivalent Fund, the total assets of the Fund may fluctuate considerably from time to time. The Investment Committee recognizes that under these circumstances, the diversification requirements outlined in the guidelines for this Fund will not always be met, but expects the manager to recognize this situation when selecting investments for the Fund.