Investment Policy
The Investment Policy of the Foundation is developed and amended by the Investment Committee, with approval of the Board of Directors of the Foundation.
A primary objective in the investment of funds is the safety of principal consistent with reasonable returns given prevailing market conditions and the selected investment approach.
Investments under the control of the Foundation are managed according to the guidelines of the Uniform Prudent Investor Rule, the Texas Uniform Principal and Income Act, and the Texas Uniform Prudent Investor Act, effective January 1, 2004.
Investment objectives will take into account the need for long-term income and growth as well as short-term income and liquidity according to the type of account being managed.
The Foundation strives for appropriate diversification in its overall investment strategy. Diversification in its broadest sense involves investing in cash, bonds, and equities. Further diversification is accomplished through investing in different types of cash equivalents, bonds, and equity mutual funds.
There are risks associated with all types of investments including inflation/yield risk, interest rate risk, credit risk, market risk, and liquidity risk. In general, equity (stocks) risk is considered to be greater than fixed income investments (bonds). Yet, over time, equity investments have produced greater returns than fixed income investments.
The Foundation cannot guarantee that the investment goals will be achieved with each account or that the value of each account will not be reduced given prevailing market conditions.
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