State Teachers’ Retirement System of Vermont

Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

B-1

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

The following pages detail the specific investment guidelines that relate to each of the managers retained by the State Teachers’ Retirement System of Vermont. Each manager shall be governed by Section A of this Policy Statement, in addition to the manager-specific guidelines listed herein. Any exemptions granted in this document (Section B) shall supercede the guidelines described in Section A. Delaware Fidelity Management Trust Company State Street Global Advisors J.W. Seligman & Co. Incorporated Wellington Management Company Delaware State Street Global Advisors Loomis, Sayles & Company, L.P. Delaware SSR Reality Advisors, Inc. REIT Morgan Stanley PPF (Prime Property Fund) UBS Realty Investors * Alternatives dealt with on a case-by-case basis Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13

B-2

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Delaware Investment Advisers

Asset Class
U.S. Large Cap Value Equity

Long-term Benchmark
S&P 500 Index

Style Benchmark
Russell 1000 Value Index

Peer Group Universe
U.S. Large Cap Value Equity Managers

Exemptions from General Guidelines:
None

B-3

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Fidelity Management Trust Company

Asset Class
U.S. Large Cap Growth Equity

Long-term Benchmark
S&P 500 Index

Style Benchmark
Russell 1000 Growth Index

Peer Group Universe
U.S. Large Cap Growth Equity Managers

Exemptions from General Guidelines:
None

B-4

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
State Street Global Advisors

Asset Class
U.S. Large Cap Core Equity – S&P 500 Index Fund

Long-term Benchmark
S&P 500 Index

Style Benchmark
S&P 500 Index

Peer Group Universe
U.S. Large Cap Core Equity Managers

Exemptions from General Guidelines:
None

B-5

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
J. & W. Seligman & Co. Incorporated

Asset Class
U.S. Small Cap Growth Equity

Long-term Benchmark
Russell 2000 Index

Style Benchmark
Russell 2000 Growth Index

Peer Group Universe
U.S. Small Cap Growth Equity Managers

Exemptions from General Guidelines:
None

B-6

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Wellington Management Company

Asset Class
U.S. Small Cap Value Equity

Long-term Benchmark
Russell 2000 Index

Style Benchmark
Russell 2000 Value Index

Peer Group Universe
U.S. Small Cap Value Equity Managers

Exemptions from General Guidelines:
None

B-7

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Delaware International Advisers Ltd.

Asset Class
Established International Equity

Long-term Benchmark
SSB PMI EPAC Index

Style Benchmark
SSB PMI EPAC Value Index

Peer Group Universe
Established International Value Equity Managers

Exemptions from General Guidelines:
Delaware is permitted to invest in Canada (up to 10%). Delaware is permitted to invest up to 15% in emerging markets equities.

B-8

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
State Street Global Advisors

Asset Class
Established International Equity – Daily EAFE Index Fund

Long-term Benchmark
MSCI EAFE

Style Benchmark
MSCI EAFE

Peer Group Universe
Established International Equity Managers

Exemptions from General Guidelines:
None

B-9

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Loomis, Sayles & Company, L.P.

Asset Class
Core Domestic Fixed Income

Long-term Benchmark
Lehman Brothers Aggregate Bond Index

Style Benchmark
None

Peer Group Universe
Core Domestic Fixed Income Managers

Exemptions from General Guidelines:
Loomis is allowed to invest up to 10% of the portfolio in securities rated below BBB-/Baa. Loomis shall not be required to notify the system of any downgrades as long as the 10% cap is not exceeded.

B-10

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
Delaware International Advisers Ltd. Delaware Investment Advisers

Asset Class
Global Fixed Income

Long-term Benchmark*
60% Lehman Brothers Aggregate Bond Index 40% Salomon Smith Barney Non-US World Government Bond Index

Style Benchmark
None

Peer Group Universe
Global Fixed Income Managers

Exemptions from General Guidelines:
Delaware is allowed to vary the average duration (interest rate sensitivity) of its global fixed income portfolio in a range of +/- 2 years around the index duration (40% proposed versus 25% guidelines). Delaware is allowed to increase the ratio for larger markets (i.e. Euro and Japan) from 120% to 200%. Delaware is permitted to invest in Rule 144A securities.

* Effective 7/01/03 (prior benchmark 75/25)

B-11

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
SSR Realty Advisors, Inc.

Asset Class
Real Estate

Long-term Benchmark
NCREIF

Style Benchmark
None

Peer Group Universe
Real Estate Managers

Exemptions from General Guidelines:
None

B-12

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
REIT Morgan Stanley PPR (Prime Property Fund)

Asset Class
Real Estate

Long-term Benchmark
NCREIF

Style Benchmark
None

Peer Group Universe
Real Estate Managers

Exemptions from General Guidelines:
None

B-13

State Teachers’ Retirement System of Vermont
Statement of Investment Policy Guidelines
Section B - Investment Manager Guidelines

Manager Name
UBS Realty Investors, LLP

Asset Class
Real Estate

Long-term Benchmark
NCREIF

Style Benchmark
None

Peer Group Universe
Real Estate Managers

Exemptions from General Guidelines:
Reporting exemptions as requested by manager.

B-14

Master your semester with Scribd & The New York Times

Special offer for students: Only $4.99/month.

Master your semester with Scribd & The New York Times

Cancel anytime.