Strategy and Policy
Investment strategy
The fund invests primarily in investment contracts issued by insurance companies, banks or other financial institutions, including investment contracts backed by high-quality fixed income securities.
The fund seeks to achieve its objective by diversifying among high credit-quality investments and investment contracts which are structured to smooth market gains and losses over time.
Investment policy
* The trust invests in a combination of synthetic contracts (backed primarily by Vanguard® bond funds), traditional investment contracts backed by major insurance providers, and bank contracts.
* The trust’s strict credit guidelines require that traditional investment contracts be rated at least AA.
* The trust will maintain an average maturity between 2-3 years.