Attached is a red-line version of proposed changes to the ARRL Investment Policy Statement. These changes were approved by the A&F committee at their April meeting. At the Board Meeting, a motion to accept these changes will be made as part of the A&F motions. I will be glad to address questions you may have before or during the meeting. The majority of the proposed changes have to do with formatting and readability. The more-substantive changes are as follows: * Makes it clear that the Treasurer can act as the Investment Manager. That is what we do now, and such is not prohibited. The change makes it clear. * Changes the targeted annual rate of return and the budgeted withdrawal rate to inflation plus 3% (from inflation + 4%). Eliminates the 7% target. (FYI, over the 7 years I have had the portfolio, we have realized a compounded annual growth rate of 7.7%). The issue here is twofold. First, the key goal should be to beat inflation by some reasonable margin. Second, total returns going forward are highly likely to be less than total returns in the past 10 years or so. We need to recognize that in our investment goals and our maximum permitted withdrawal rate. Note that the budgeted withdrawal rate is a permitted figure, not a required figure. In the last 7 years we have not budgeted a specific withdrawal. * In the Investment Guidelines section, tightens up the proportion of the bond portfolio that can be less than investment grade (even though we have historically had zero percent that are less than investment grade). Also permits bond holdings of companies with high credit ratings to be a slightly higher percentage of the portfolio. * In the Ineligible Investments section, relaxes the prohibition on owning commodities if the investment is in a publically-traded equity investment. Direct investment in commodities is still prohibited. Also removes the prohibition on short sales. As to these items, the explanation is better made in person as it relates to the overall philosophy behind investment liquidity and investment cycles. We can discuss before or during the meeting. * In the Appendix, made a very slight tweak to the target range for cash and fixed income. Rick, K7GM Frederick (Rick) Niswander, Ph.D., CPA, CGMA Professor of Accounting Bate 3110 East Carolina University Greenville, NC 27858