The Lynde and Harry Bradley Foundation

History of Asset Allocation Changes

Updated March 21, 2006

February 23, 1993

Approved 60% equity/40% fixed income asset allocation.

January 25, 1994

Approved 62% equity/38% fixed income asset allocation.

August 29, 1995

Discussed 70% equity/30% fixed income asset allocation but no formal action taken.

November 27, 1995

Equities increased to 68% but no action taken to rebalance portfolio.

February 23, 1996

Unanimous consensus of the Committee to continue the policy of increasing the equity portfolio through reinvestment of all dividends and gains and using the fixed income portfolio's interest income and principal to fund current grant payments and expenses as needed. No maximum limit was established for the equity percentage allocation, but the actual percentage allocation will be reviewed and evaluated at each Investment Committee meeting.

April 22, 1996

Unanimously approved asset allocation whereby 75% of the Foundation assets be invested in marketable equities with a plus or minus 5% allowance; that 15% of the Foundation assets be invested in fixed income investments again with a plus or minus 5% allowance and that up to 10% of the Foundation assets be invested in alternative investments which were defined as nonmarketable assets which can include real estate and which can have either equity or fixed income characteristics.

June 2, 1997

Based on Wilshire asset allocation study, modified slightly the asset allocation percentages to include: total cash/cash equivalents 1.5%; fixed income, including high yield bonds 13.5%; foreign stocks 20%; U.S. large caps 37% and small caps at 18% for total equity investment of 75%; and non-liquid alternative investments at 10%.

November 17, 1997

Adopted portfolio rebalancing guidelines (See Exhibit C on page 6).

June 1, 1998

Rejected proposed change in equity allocation from 75% to 70%. Approved continuation of 75% equity allocation. Approved increase in foreign equity allocation to 22%.

November 16, 1998

Approved continuation of 18% target allocation to small/mid cap strategy.

August 23, 1999

Directed rebalancing of equity portfolio from 78.25% to 75%.

February 21, 2000

Reaffirmed existing asset allocation percentages, including 10% to alternative investments.

June 5, 2000

Approved 2% asset allocation target for REITs, which is to be included as part of the fixed income portfolio.

February 26, 2000

Approved reduction of foreign equity allocation from 22% to 20% and an increase in the U.S. small cap allocation from 18% to 20%.

November 12, 2001

Approved increase in REIT allocation from 2% to 4%. Rejected proposed change in equity allocation from 75% to 70%.

February 18, 2002

Reaffirmed 20% target allocation to foreign equities. No change in asset allocation considered necessary.

June 3, 2002

Goldman Sachs presented update of their asset allocation review that was originally completed in June 2000. Bradley Foundation's asset allocation was most parallel to Goldman Sachs' aggressive model portfolio. No changes in asset allocation were considered necessary by Finance Committee.

August 21, 2002

"Stay the course" and not change the current asset allocation targets, and funds for expenditures in the second half of 2002 be withdrawn from both the fixed income and equity portfolios with the goal of maintaining the equity allocation in the 70% to 75% range.

November 11, 2002

No change in asset allocation considered necessary.

February 24, 2003

Stratford Advisory Group presented a report of their review of the Foundation's investment program. Key Finance Committee asset allocation actions resulting from the report are as follows:

•	Reaffirmed the existing major asset class allocation targets (75% equities; 14.5% fixed; 10% alternative; .5% cash).

•	Retained allocations within the equity sector (large cap domestic 35%; foreign 20%; small cap domestic 20%).

•	Retained allocations within the fixed income sector (bond portfolio 8.5%; REITs 4.0%; high yield 2.0%).

•	Allocated ¼ each to Treasury Inflation Protected Securities (TIPS) and the active bond manager and 50% to index funds.

•	Retained the two existing bond index funds but allocated 50% to each of the funds.

November 3, 2003

Affirmed asset allocation of 14.5% fixed income, 75% equity, 10% alternative assets, and .5% to cash.

August 16, 2004

Selected Cambridge to complete an asset allocation study and make recommendations.

February 15, 2005

Cambridge presented final asset allocation recommendation.

May 20, 2005

The asset allocation recommended by Cambridge was approved.

U.S. Equity	29.5%

Non-US Developed Equity	15.0%

Emerging Markets Equity	5.0%

Marketable Alternatives	10.0%

Non-Marketable Alternatives	15.0%

Real Assets	8.0%

Real Estate	5.0%

Fixed Income	12.5%

100.0%

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