S Triangle Community Foundation - Form Creating an Agency Fund

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�• triangle community INITIAL INVESTMENT SELECTION FORM L'qWPFF0L1NDATl0N FOR AGENCY FUND FUND NAME: Orange County Community Giving Fund Funds are created at Triangle Community Foundation as either endowed or nonendowed. Endowed funds are permanent funds invested for the long-term in a diversified portfolio of publicly traded stocks, hedge funds, real estate, private equity, bonds and cash. Endowed funds are operated under a spending policy set by TCF and guided by the North Carolina Uniform Prudent Management of Institutional Funds Act (UPMIFA). Currently up to 5%of an endowed fund's value is available for distribution in the form of grants on an annual basis. Nonendowed funds do not have a limitation on distributions and therefore have cash flow needs requiring greater flexibility. Our Nonendowed Portfolio has both Equity Oriented and Fixed Income Oriented Portfolios. And assets can also be held in pass-through funds that are not exposed to the stock and bond markets. Investment policies and investment managers are recommended by the Foundation's Investment Committee and are approved by the Foundation's Finance Committee. These two committees are also responsible for monitoring performance. Performance numbers can be obtained by contacting the Foundation or visiting its website at www.trianglecf.org. Investment Options: please select from either our Endowed or Nonendowed Portfolio Options: Endowed Under our present investment strategy, the Foundation has one endowed portfolio. Because we can predict the cash distributions required of endowed funds (5%), assets in the Endowed portfolio can be invested in a greater range of asset classes, some of which are less liquid than others, but help balance risk and return more effectively. ❑ Endowed Portfolio (60%equities-20%fixed -20%alternatives) Nonendowed Fundholders of nonendowed assets may choose between several portfolios. The Equity-Oriented portfolio closely mirrors the Endowed portfolio, but does not have any exposure to alternative investments since we do not know the cash distribution needs of nonendowed funds and therefore need to preserve liquidity. Nonendowed fundholders have the opportunity to change their investment option once a year. For fundholders who are risk-averse, the Foundation offers pass-through funds which are not exposed to the stock and bond market. Any income earned is absorbed by the Foundation in lieu of administrative fees. ❑ Pass-through Fund (not invested) ❑ Fixed Income Oriented Portfolio (30%equities-70%fixed) ❑ Equity Oriented Portfolio (75%equities-25%fixed) 1