Portfolio Guidelines Sample Clauses

Portfolio Guidelines o The portfolio is to generally remain fully invested with a cash position not to exceed 5%. Cash may temporarily go above 5% during brief periods between significant sale and purchase transactions and due to client cash flows.

Portfolio Guidelines. (1) Portfolio duration must be managed to match projected liability duration, plus or minus 1/2 year. (2) Portfolio convexity should be maximized to a level as close as possible to that of the liabilities, not to fall below -1.0. (3) All investments have to be in US dollar denominated securities. (4) Investments must be listed with the Securities Valuation Office of the National Association of Insurance Commissioners ("NAIC"). If a given security is not listed at the time of purchase, Reinsurer shall apply for listing of such security prior to the end of the calendar quarter in which the purchase is made. (5) All investment must be rated a category 1 or category 2 by the NAIC when purchased. No more than 10% of the portfolio shall be invested in NAIC category 2 investments. (6) Investments shall be limited to bonds and short term securities (maturity of less than 1 year). (7) Short term securities shall be limited to (a) US Treasury Bills, Bonds, or Notes; commercial notes of US corporations, bankers acceptances and loan participations having an A-1 or P-1 quality rating and not to exceed 5% of the portfolio per issuer; interest-bearing accounts and certificates of deposit of US banks and savings and loan associations not to exceed FDIC or FSLIC limits; shares in money market mutual funds not to exceed 5% of the portfolio. (8) No investments will be made in mortgage backed security derivatives (inverse-floaters, interest only strips, and principal only strips). (9) In regard to mortgage backed securities: no Z-Class, Accrual Bonds, and similar tranches such as Jump-Z tranches should be held in the portfolio; no inverse floating or super-floating CMOs should be held in the portfolio; no synthetic mortgage securities should be held in the portfolio. Mortgage backed securities will be managed so as to minimize prepayment risk. (10) No more than 25% of the portfolio will be invested in mortgage backed and asset backed securities. (11) No investments will be made in callable securities (12) No investments will be made in municipal bonds. (13) No more than 5% of the portfolio will be invested in any one corporate issuer. (14) No transaction that will result in a realized capital loss in excess of $3,000 will be executed without the advance written approval of the Company. (15) No investment will be made in a security that is not publicly traded without the advance written approval of the Company.

Portfolio Guidelines. Min Wtd Avg Portfolio Quality (Notes 1 & 2) Investment Sub-Portfolio Sub-Portfolio Yield Benchmarks Max Duration Sub-Portfolio Concentration Limits Instrument Per Issue (Note 3) Sub-Portfolio Max AA-/ Aa3/AA- Enhanced Cash Note 4 N/A MMFs N/A none Up to 100% USTs 1 year Up to 100% USAs 1 year Up to 75% Repos 7 days Up to 50% CDs 1 year 5% or less of sub-portfolio Up to 25% CCP or MCP 1 year Up to 75% Corps 1 year Up to 25% Munis 1 year Up to 100% Short Duration (~1-3 yr maturities) BAML 1-3 Year Treasury Index or Barclays Capital 1 Year Municipal Bond Index 2 years or less USTs N/A none Up to 100% USAs Up to 75% MFs Up to 100% SOVs 5% or less of sub-portfolio Up to 25% MRS Up to 25% ABS Up to 25% Corps Up to 25% Munis Up to 100% Intermediate Duration (~4-7 yr maturities) BAML 1-3 Year Treasury Index or Barclays Capital 5 Year Municipal Bond Index 4 years or less USTs N/A none Up to 100% USAs Up to 75% MFs Up to 100% SOVs 5% or less of sub-portfolio Up to 25% MRS Up to 25% ABS Up to 25% Corps Up to 25% Munis Up to 100%

Portfolio Guidelines. Section 6

Portfolio Guidelines. The benchmark for the account will be the ▇▇▇▇▇▇ Brothers Aggregate Bond Index. The duration of the portfolio will be maintained within +/- 50% of that of the index. II. Approved Investments Types and Limitations: 1) Dollar-denominated investment-grade debt - No Limitation 2) Dollar-denominated non-investment-grade debt - 10% of Assets

Portfolio Guidelines