ASSET ALLOCATION STRATEGY
One of the most critical elements of investment strategy is asset allocation. The Foundation’s investment policy is based on the following approach:

• Allocating the majority of the portfolio to asset classes with high long-term returns, i.e. equities.
• Constructing a well-diversified portfolio able to achieve its return objectives during a variety of economic and market conditions.
• Avoiding attempts to predict short-term market behavior via market timing strategies.

A careful analysis of the Foundation’s return objectives and tolerance for short-term risk has produced the following strategic asset allocation:

Asset Class	Target Weight
Large/Mid Cap US Equities	22.5%
Small Cap US Equities	12.5%
International Equities	20.0%
Emerging Markets Equities	5.0%
Total Equities	60.0%*
Investment Grade Bonds	15.0%
High Yield Bonds	5.0%
Absolute Return	7.5%
Hedged Equity	7.5%
Commodities	5.0%
Total Alternative Investments	25.0%*

A copy of the most current asset allocation is available upon request by contacting Debbie Rooney at drooney@vermontcf.org or (802) 388-3355.

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