The Gordon R. Irlam Charitable Foundation

Investment Policy Statement

September 28, 2021

Introduction. The purpose of this statement is to establish guidelines for the prudent investment of the Foundation's assets. In the process of identifying the investment strategies to be used, these guidelines provide stability in the management of the portfolio. This policy driven approach reduces the Board's and investment manager's propensity to act impulsively during volatile markets. The policy furthermore provides parameters for the portfolio by providing guidelines for selecting appropriate investments and classes of assets. It is recognized that from time to time the Board of Directors' attitudes, expectations and objectives may change. Therefore, this policy statement is intended to be used as a guideline rather than a rigid statement of policy from which there can be no deviation.

Board Objectives and Position. The key Board objectives and positions relevant to this statement are:

As a result, the Foundation has a desire for high returns and a high risk tolerance for low returns.

Investment Philosophy. The Board's investment philosophy is to exercise ordinary business care and prudence in its investment of Foundation assets considering the long and short-term needs of the Foundation in carrying out its charitable purposes, its present and anticipated financial requirements, expected total return on its investments, price level trends, and general economic conditions. The Board recognizes that the uncertainty of future events, volatility of investment assets, and the potential loss in purchasing power are present to some degree with all types of investments. While unnecessary levels of risk are to be avoided, the assumption of a reasonable level of risk is warranted and encouraged in order to allow the opportunity to achieve satisfactory results consistent with the objectives and investment philosophy of the Foundation. Modern Portfolio Theory will form the basis of the investment philosophy.

Investment Objectives. The Foundation will invest its assets prudently so as to meet the Board Objectives and Position.

Investment Goals. The Foundation desires a portfolio of investments having an expected arithmetic mean return, excluding that on cash equivalents held to meet the reasonable operating needs of the foundation, of no less than 70% of the returns on the S&P 500 with dividends reinvested, and a relative volatility of no more than twice the index. This is the expected return and volatility level, realized values may differ. These return and volatility levels are chosen with regard given to the Foundation's objectives for doing the greatest "expected" good, not planning to be around indefinitely, and not needing to provide ongoing financial support. The Foundation recognizes these goals may at times result in the value of the Foundation's assets dropping by 60% or more in a single year.

Financial Guidelines. In order to meet the Investment Goals, investments should be made according to the following asset allocation and guidelines:

Prohibited transactions: Exceptions to these policies are permitted: