This investment policy statement is designed to be a guideline for the assets of American Society of Animal Science. Assets of the American Society of Animal Science will be invested in a combination of equities and bonds (Fixed Income), invested for long-term growth of capital.

In understanding that risk is present in all types of securities and investment styles, the members recognize that some risk is necessary to produce long-term investment results that are sufficient to meet the ASAS long-term objectives. However, the investment managers are to make reasonable efforts to control risk and will be evaluated regularly to ensure that the risk assumed is commensurate with the given investment style and objectives.

The primary objective of these funds is threefold -- liquidity, income and safety. The allowable investments for this category are: Certificates of Deposit, Money Market Funds, Bank Deposits, US Treasury Bonds and other Government issued bonds, U.S. Corporate Bands rated A or better by Moody’s or S&P, Mutual Funds provided that the underlying securities within the fund meet all objectives, and Convertible Securities.

The primary objective of these funds is long-term growth. The time horizon for these assets should be 10+ years. Liquidity is not a consideration for these assets other than in an emergency situation. Allowable investments are: Stocks traded on a National exchanges and Mutual Funds provided that the underlying securities within the fund meet all objectives, and Convertible Securities.

The use of a Registered Investment Advisor is allowed provided that the advisor meets all qualifications under the registered Investment Advisor Act. If employed, the advisor may have full discretion to buy and sell securities on behalf of the ASAS. Rebalancing of the investment asset classes will be reviewed annually by the investment advisor and officers. Consideration will also be given to rebalancing of the allocation with contributions or withdrawals that are made to the investment pool. Prohibited transactions and investments for the Investment Account include: short selling, margin transactions, borrowing, buying or selling of options or leveraging of its assets.

A statement of the American Society of Animal Science investment portfolio shall be sent at least quarterly to the Director and bookkeeper of the ASAS; the Investment Consultant and the Society Finance Committee will review investments either quarterly or semi-annually via conference call. In addition, the Investment Consultant shall make a report semi-annually to the Board of the Society. All interested parties shall receive statements at their request.

1. Cash Equivalents
   

   Treasury Bills
   Money Market Funds
   STIF Funds
   Commercial Paper
   Banker's Acceptances
   Repurchase Agreements
   Certificates of Deposit

2. Fixed Income Securities
   

   U.S. Government and Agency Securities
   Corporate Notes and Bonds
   Mortgage Backed Bonds
   Preferred Stock
   Fixed Income Securities of Foreign Governments and Corporations
   Planned Amortization Class Collateralized Mortgage Obligations (PAC CMOs) or other "early tranche" CMOs

3. Equity Securities
   

   Common Stocks
   Convertible Notes and Bonds
   Convertible Preferred Stocks
   American Depository Receipts (ADRs) of Non-U.S. Companies
   Stocks of Non-U.S. Companies (Ordinary Shares)

4. Mutual Funds
   

   Mutual Funds which invest in securities as allowed

5. Other Assets
   

   GIC's

Prohibited investments include, but are not limited to the following:

1. Commodities and Futures Contracts
2. Options
3. Limited Partnerships
4. Venture-Capital Investments
5. Real Estate Properties
6. Interest-Only (IO), Principal-Only (PO), and Residual Tranche CMOs
7. The investment manager(s) own securities, affiliates, and subsidiaries

The Society is committed to the general principles of the Illinois Prudent Investor Rule that set forth standards to which members are expected to adhere in administering Funds, and will follow those standards.

The standards of the Prudent Investor Rule can be summarized as:

1. This standard requires the exercise of reasonable care, skill, and caution and is to be applied to investments not in isolation, but in the context of the portfolio as a whole and as a part of an overall investment strategy that should incorporate risk and return objectives reasonably suitable to the investment portfolio.
2. No specific investment or course of action is, taken alone, prudent or imprudent. Investments may be made in every kind of property and type of investment. Investment decisions and actions are to be judged in terms of reasonable business judgment regarding the anticipated effect on the portfolio as a whole under the facts and circumstances prevailing at the time of the decision or action. The prudent investor rule is a test of conduct and not of resulting performance.
3. There is a duty to diversify the investments unless, under the circumstances, it is reasonable to believe that it is in the best interests of the beneficiaries and furthers the purposes of the Society not to diversify.

In addition to monthly statements, a statement of the American Society of Animal Scienceinvestment portfolio shall be sent at least quarterly to the ASAS Office of the Executive Director. These quarterly monitors will include:

1. Investment performance over the past quarter
2. Trailing twelve month performance
3. Prior three years average annual return
4. Benchmarks appropriate for holdings in the ASAS’s portfolio

Annually, the investment consultant shall also provide a reporting of:

1. Performance relative to goal
2. Market and economic conditions and any changes to asset allocation or investment strategy
3. Asset allocation

The investment consultant shall meet with and make a report to the AAHS Board of Directors and/or Finance Committee annually.

The Board, Finance Committe or the Executive Director shall inform the consultant of any changes in the goals, financial condition or needs of the ASAS. This investment policy should be reviewed at least every five years to make sure that it is in accord with the ASAS’s goals and objectives as well as with market and economic conditions.

Selection of investments and continuing supervision of the investment portfolio shall be the primary responsibility of the Finance Committee and/or Executive Director. The ASAS Board authorizes the ASAS Executive Committee to function as the ASAS Finance committee. This committee may employ outside money managers whose actions will then be subject to on-going review by the Finance Committee, Investment Consultants and the Board.