September 2013
“Nine tenths of education is encouragement.”
-Anatole France
Granite Education Foundation
Investment Policy
GEF Investment Policy Statement (2009) is designed to comply
with the following State of Utah statues:
 Uniform Prudent Management of Institutional Funds Act (UPMIFA)
(adopted by State of Utah in 2007)
 Utah State Money Management Act
•Rule 2: Investment of Funds of Public Education Foundations
established under Section 53A-4-205 or funds acquired by gift,
devise or bequest. June 2008
Granite Education Foundation
Investment Policy
GEF distinguishes between operational funds and endowment
funds as defined by UPMIFA.
Operational funds: funds that may be used within the current year and are
invested in short term assets at the following financial institutions:
 Zions Bank
 Granite Credit Union
Endowment funds: funds “not wholly expendable by the institution on a
current basis”, (UPMIFA 2007)
Endowment funds are being managed as if they continue into perpetuity
and are invested in long term assets by an outside Investment Advisor that
is registered with the Securities and Exchange Commission and certified by
the State of Utah Money Management Council.
 Sanford C. Bernstein & Co, LLC
Granite Education Foundation
Endowment Asset Allocation as of June 30, 2013
IPS Maximum Allocation
Cash:
50%
Fixed Income: 80%
Equities:
The account’s current equity exposure is near the high end of the range. (61% actual
versus a maximum allocation of 70%). Asset Allocation is in line with Money
Management Act Rule 2 guidelines.
70%
GEF Consolidated Asset Allocation
March 31, 2012
Real Estate
11%
Cash
1%
Fixed Income
25%
Pfd Stock
0%
Equities
63%
Granite Education Foundation
Endowment Performance Summary
Operational funds have
generated returns similar to
Treasury Bills
As of December 31, 2010 the GEF
portfolio is being solely managed
by Sanford C. Bernstein & Co
LLC
Benchmark is defined as: 34.6% S&P 500 / 4.0% Russell 2500 / 15.2% MSCI EAFE Index / 6.2% MSCI Emerging Markets / 16.4% Lipper Investment
Grade Debt / 10.1% FTSE Developed REIT Index / 6.6% Barclays Capital Global Aggregate / 7.0% Lipper US Government TIP Index