UCF Balanced Funds Investment Policy Guidelines

Because the assets of the UCF Balanced Funds consist of units of the UCF Fixed-Income Fund and the UCF Equity Fund, broad diversification within each asset class is assured by the guidelines pertaining to those two Funds. To maintain the desired diversification between asset classes and risk parameters, the Investment Committee has determined that equity exposure in the Conservative Balanced Fund will remain between 30% and 40% of the total Fund, that equity exposure in the Moderate Balanced Fund will remain between 55% and 65% and that equity exposure in the Aggressive Balanced fund will remain between 70% and 80%. Within these limits, the asset allocation manager is responsible for allocating investments between fixed-income and equity in accordance with its judgment of the potential reward and risk associated with each asset class. Any recommendation to deviate from these limits for equities must be approved by the Investment Committee prior to its implementation.