reposition the portfolio consistent with these guidelines over a reasonable time frame.

Proxy Voting

The Board delegates full authority for proxy voting to the administration for the securities under their discretionary authority and requires the investment managers to vote all proxies in the best interest of the Endowment. In addition, when requested, the administration will report to the Board regarding their proxy-voting policies and activities behalf of the Endowment.

Transaction Costs

The Board requires the Investment Management Firm, in their capacity as fiduciaries, to manage the transactions costs they incur on the Endowment’s behalf in the best interests of the University. When requested, the firm will report to the Board or its designated Committee regarding the transactions costs incurred and the brokers used on the Endowment’s behalf.

V. Performance Evaluation

Endowment performance will be monitored and reviewed over short and long-term time periods, with an emphasis on longer-term periods in order to include full market cycles and reflect the Endowment's long-term investment strategy. Performance will be evaluated at two levels: total Endowment and asset class. The levels will include a market index and peer group measurement review. Performance will be reviewed on a gross and net return basis and will include risk metrics and risk-adjusted returns.

Performance Benchmarks

The total Endowment performance will be measured against two principal benchmarks:

1. The primary performance objective of achieving a long-term total return, net of fees and expenses, of at least 5.0%. It is expected that portfolio performance will vary significantly from this benchmark over shorter periods. Therefore, performance compared to this benchmark will be evaluated only over very long periods (ten years or more).
2. A Policy benchmark consisting of market indexes reflecting the Endowment’s “strategic target” asset allocation percentages. Performance compared to this benchmark will be evaluated over rolling three- to five-year periods. The current Policy Benchmark appears in the following table:

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ALL POLICIES ARE SUBJECT TO AMENDMENT