SRC recognizes that all investments go through cycles and therefore there will be periods of time in
which the investment objectives are not met or when specific managers fail to meet their expected
performance targets. Recognizing that no manager is perfect all the time and that good years help
to make up for bad ones, the Investor acknowledges the principal that managers must be given an
opportunity to make up for poor periods and that unless there are extenuating circumstances,
patience will often prove appropriate when performance has been disappointing.

On an overall portfolio basis, SRC establishes a goal of achieving the stated investment return
objectives over a five-year period of time. A shorter time frame would contradict the principal that
managers should generally be given the opportunity to overcome poor performance with
subsequent excellent performance. From time to time, market conditions may cause the Portfolio’s
investment in various asset classes to vary from the established allocation. To remain consistent
with the asset allocation guidelines established by this Policy, each asset class in which the Portfolio
invests shall be reviewed and re-balanced on a regular basis by the Advisor. Reports regarding
portfolio performance will be generated on a quarterly basis, and there will be a formal review at
least annually.