Marquette Associates, Inc. - Integrity, Diligence, Solutions

150 North Wacker Drive
Suite 1900
Chicago, Illinois 60606
Tel: (312) 527-5500
Fax: (312) 527-9064

Investment Policy:

The approach of Marquette Associates is to develop an Investment Policy that relies on both qualitative and quantitative analysis. Several examples of these factors are described below:

Size and structure of the Program’s liabilities. Working with the client, Marquette will assess the impact that the investment program’s cash flow needs should have on policy.

Portfolio optimization. Using state-of-the-art modeling portfolio optimization, Marquette identifies combinations of assets that provide the highest expected return at a given level of risk (return volatility).

Financial circumstances. The current and expected future financial circumstances of the client will influence policy. Understanding the financial circumstances will allow us to better assess the program’s capacity to bear risk.

Risk tolerance. Ultimately, it is the client that must utilize the policy. Marquette finds that the attitudes of the decision makers regarding risk play an integral role in this process.

Marquette Associates recommends that the INVESTMENT POLICY is formally reviewed annually. A review should also be completed when there is a fundamental change to the program, including but not limited to, a change in underlying liabilities or a significant change in market value of the investment program. It is important to note that compliance to the policy is reviewed quarterly as an integral part of the Executive Summary performance report.