distribution policy

The distribution policy provides a means by which the annual dividend is managed and maintained at appropriate levels consistent with the overall objectives of the Fund. The objective of the distribution policy is to:

Provide a stable and predictable cash flow to Fund participants.
Balance the needs of current spending and asset growth in order to protect the principal and income of the endowment assets against erosion by inflation.

The distribution from the Fund (dividend) is currently determined as follows:

During the fourth quarter of each year, the dividend for the next calendar year will be determined based upon 5.0% of the average of the previous 16 quarters market values of the Fund. The dividend is credited monthly and distributed quarterly.

The Board of Trustees determines the dividend from the Fund annually, based primarily on the dividend as calculated from the distribution policy. The Board of Trustees may, however, make adjustments to the calculated dividend after consideration of other factors such as prior dividend history, current economic conditions and prevailing markets.