UCF Equity Fund Investment Policy Guidelines

1. Permissible investments include common and preferred stock, convertible securities, warrants, and cash equivalent securities. Forward, futures, and options contracts with prior written authorization may be used in certain situations. (See Prohibited Transactions.)
2. Domestic managers should invest no more than 10% of the market value of the portfolios for which they are responsible in the equities of companies headquartered outside the U.S. Both direct investments and depository receipts are permissible in the non-U.S. segment of the portfolio.
3. Foreign managers should invest no more than 10% of the market value of the portfolios for which they are responsible in the equities of companies headquartered inside the U.S. Both direct investments and depository receipts are permissible in the U.S. segment of the portfolio.
4. Investments should be made in equity markets of countries which the manager deems to be politically stable.
5. Securities of foreign issuers held in each manager's portfolio should be traded in markets which in the manager's opinion provide the investor with sufficient liquidity, and which adhere to fair, safe and orderly trading and settlement practices and procedures.
6. With respect to at least 75% of the value of each manager's portfolio, the maximum position in a single issuer's securities should not exceed 5% of total assets at current market value. Each manager has discretion to take more concentrated positions in the remaining 25% of the portfolio, but should not allow any one position to exceed 8% of the portfolio.
7. No more than 20% of each manager's portfolio, at market value, should be invested in companies with a market capitalization of $100 million or less.
8. No more than 25% of the market value of each manager's portfolio may be invested in companies in which the combined holdings of the manager's clients constitute 10% or more of the outstanding stock.
9. Each manager's portfolio should be appropriately diversified by sector, by industry and by individual company, and it should reflect the investment style of the manager.This diversification and adherence to relevant style characteristics should be demonstrated in the manager's quarterly reports to the Investment Committee.
10. Cash equivalent positions should not exceed 15% of each manager's portfolio, at market value.
11. For the cash and equivalent portion of their portfolios, managers are expected to utilize a high quality broadly diversified commingled fund or other high quality investment vehicle made available by the Foundation's custodian bank. Permission to use comparable funds or other cash equivalent vehicles may be requested from the Investment Committee. The request must be accompanied by evidence that the alternative funds or vehicles meet the same or higher standards of quality and diversification that would be achieved by using the custodian bank's vehicles. Written Investment Committee approval is required before a manager may use cash equivalent vehicles other than those made available by the Foundation's custodian bank.