☐ ☐ ☐ ☐

This Statement of Investment Policy is issued by the Board of Regents of Kentucky State University in conjunction in with the endowment holdings of Kentucky State University. Pursuant to KRS 164A.560, the Board of Regents of Kentucky State University elects to receive, deposit, collect, retain, invest, disburse and account for funds received as contributions to the endowment and shall manage the gifts and donations in accordance with KRS 164A.550 to KRS 164A.630.

Kentucky State University is one of eight public higher education institutions in the Commonwealth of Kentucky and is governed by appropriate Kentucky revised Statutes and by the Board of Regents. The Board consists of 11 Regents, eight of whom are appointed by the Governor of the Commonwealth. One regent each is elected by the University faculty, staff and students.

The Kentucky State University President, by virtue of his/her office, has the responsibility for the management of the University's endowment holdings and to report to the Board of Regents at each quarterly Board meeting on the status of these holdings.

The Board of Regents of Kentucky State University recognizes its fiduciary duty not only to invest the University's endowment holdings in formal compliance with the "Prudent Man Rule," but also manage those funds in continued recognition of the basic long-term nature of the University. The Board of Regents interprets this to mean, in addition to the specific guidelines and restrictions set forth in this document, that the assets of the University shall be actively managed, that is, investment decisions regarding the particular securities to be purchased or sold shall be the result of the conscious exercise of discretion. Further, the Board of Regents recognizes that, commensurate with its overall objective of maximizing long-range return while maintaining a high standard of portfolio quality and consistency of return, it is necessary that proper diversification of assets be maintained both among and within the classes of securities held. Within this context of active management and the necessity of