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 Haimovici Fund Investment Policy

Hypothetical Executive Summary

Current Assets $250,000
Time Horizon Infinite
   
Expected Return  
Equity Investments 9.00%
Fixed Income Investments 4.00%
Cash 1.00%
   
Risk Tolerance Moderate
   
Spending Policy Limited to investment interest, or if necessary, a percentage of the principal not to decrease the Fund under $225,000

Asset Allocation

  Lower Limit Strategic Allocation  Upper Limit 
Total Equity Investments  0.0% 60.0%  70.0% 
Total Bonds and Cash  30.0%  40.0%  100.0% 
Domestic Large Cap Equities  40.0%  46.0%  70.0% 
Large Growth Style
20.0%  23.0%  35.0% 
Large Value Style
20.0%  23.0%  35.0% 
Domestic Small Cap Core Equities  0.0%  5.0%  10.0% 
International Equities  0.00%  9.0%  20.0% 
Fixed Income  30.1%  38.0%  40.0% 
Cash  0.0%  2.0%  5.0% 

Evaluation Benchmarks

Large Cap Growth:
Large Cap Value:
Small Cap Core:
Fixed Income: 
Russell 1000 Growth Index
Russell 1000 Value Index
Russell 2500 Index
Lehman Brothers Intermediate Government/Credit Index 

  1. Rebalancing of the investment pool will occur when:

    a. Contributions or withdrawals are made to the investment pool
    b. Any style element moves above its upper limit or below its lower limit
    c. Rebalance annually to strategic allocation

  2. The Finance Committee may adjust the strategic allocation limits (lower and upper limits) in accordance with market conditions.

Background of the Society for Vascular Surgery

The name of the organization is the Society for Vascular Surgery® (hereinafter the "SVS"). It represents a merger of the Society for Vascular Surgery, founded in 1947, and the American Association for Vascular Surgery (formerly the North American Chapter of the International Society for Cardiovascular Surgery), founded in 1952.

The objectives of the Society shall be:

  1. To continue to carry out the activities formerly conducted by both the Society for Vascular Surgery and the American Association for Vascular Surgery.
  2. To be a strong advocate for its members in all areas of vascular surgery and endovascular surgery.
  3. To improve the diagnosis and management of patients with vascular disease.
  4. To clearly define the role of surgery, endovascular surgery, and medical management in the treatment and prevention of these diseases.
  5. To promote clinical and basic research in vascular disease.
  6. To promote the development and implementation of new technology for diagnosing and treating vascular disease, by promoting research and education and by interfacing with industry and regulatory agencies.
  7. To provide education for vascular surgeons in new science, surgical techniques and practice, through an annual scientific meeting and other educational media.
  8. To promote, encourage, and improve the dissemination of knowledge concerning all aspects of vascular disease to students, interns, residents, fellows, other physicians and other health care workers.
  9. To disseminate information to patients and the public on all aspects of vascular disease and health.
  10. To develop special training for surgeons interested vascular surgery.
  11. To standardize the nomenclature and reporting of vascular diseases, and to develop appropriate position statements and practice guidelines.
  12. To address social, economic, ethical, and legal issues that relate to vascular surgery.

Background of the Haimovici Fund

The Haimovici Fund (hereinafter the "Fund") is a separate endowment fund derived from a bequest by Dr. Henry Haimovici. The Fund is dedicated exclusively for use in supporting and honoring international work and study in the field of vascular surgery. Said support includes (but is not limited to) sponsoring distinguished individuals from outside of the United States to speak at annual meetings of the SVS and sponsoring young vascular surgeons from economically challenged nations to undertake study and research in the United States. Funding of such operations come strictly from the investment income of the Haimovici Fund (and, if deemed necessary from time to time, portions of the principal that would not reduce the Fund balance below $225,000).

Investment Philosophy

This investment policy statement is designed to be a guideline for the assets of The Haimovici Fund. Assets of The Haimovici Fund will be invested in a combination of equities and bonds (Fixed Income),  invested for long-term growth of capital.

In understanding that risk is present in all types of securities and investment styles, the members recognize that some risk is necessary to produce long-term investment results that are sufficient to meet the Fund’s long-term objectives. However, the investment managers are to make reasonable efforts to control risk and will be evaluated regularly to ensure that the risk assumed is commensurate with the given investment style and objectives.

Fixed Income and Cash
The primary objective of these funds is threefold -- liquidity, income and safety. The allowable investments for this category are: Certificates of Deposit, Money Market Funds, Bank Deposits, United States Treasury Bonds and other Government issued bonds, United States Corporate Bands rated A or better by Moody’s or S&P, Mutual Funds provided that the underlying securities within the fund meet all objectives, and Convertible Securities.

Equities
The primary objective of these funds is long-term growth. The time horizon for these assets should be 10-plus years. Liquidity is not a consideration for these assets other than in an emergency situation. Allowable investments are: Stocks traded on a National exchanges and  Mutual Funds provided that the underlying securities within the fund meet all objectives, and Convertible Securities.

The use of a Registered Investment Advisor is allowed provided that the advisor meets all qualifications under the registered Investment Advisor Act. If employed, the advisor may have full discretion to buy and sell securities on behalf of The Haimovici Fund. Rebalancing of the investment asset classes will be reviewed annually by the investment advisor and officers. Consideration will also be given to rebalancing of the allocation with contributions or withdrawals that are made to the investment pool.

Prohibited transactions and investments for The Haimovici Fund Account include: short selling, margin transactions, borrowing, buying or selling of options or leveraging of its assets.

Reports
A statement of The Haimovici Fund investment portfolio shall be sent at least quarterly to the Director and accountant of the SVS Haimovici Fund; the Investment Consultant and the Society Finance Committee will review investments either quarterly or semi-annually via conference call. In addition, the Investment Consultant shall make a report annually to the Board of the Society or designated committee for The Haimovici Fund. All interested parties shall receive statements at their request.

Illinois Prudent Investor Rule
The Haimovici Fund is committed to the general principles of the Illinois Prudent Investor Rule that set forth standards to which members are expected to adhere in administering funds, and will follow those standards.

The standards of the Prudent Investor Rule can be summarized as:

  1. This standard requires the exercise of reasonable care, skill, and caution and is to be applied to investments not in isolation, but in the context of the portfolio as a whole and as a part of an overall investment strategy that should incorporate risk and return objectives reasonably suitable to the investment portfolio
  2. No specific investment or course of action is, taken alone, prudent or imprudent. Investments may be made in every kind of property and type of investment. Investment decisions and actions are to be judged in terms of reasonable business judgment regarding the anticipated effect on the portfolio as a whole under the facts and circumstances prevailing at the time of the decision or action. The prudent investor rule is a test of conduct and not of resulting performance
  3. There is a duty to diversify the investments unless, under the circumstances, it is reasonable to believe that it is in the best interests of the beneficiaries and furthers the purposes of The Haimovici Fund not to diversify

Finance Committee

Selection of investments and continuing supervision of the investment portfolio shall be the primary responsibility of the Finance Committee and/or Executive Director. This committee may employ outside money managers whose actions will then be subject to on-going review by the Finance Committee, Investment Consultants, and the Board.

The committee will consist of at least three individuals, of whom at minimum 1 member is appointed by the Board of Directors.

It is recognized that stability of this committee is a critical component of a successful long-term investment program. Therefore, Finance Committee members will be appointed to staggered terms of more than one year.

Updated September 2006
Affirmed by SVS Board of Directors January 2010

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Society for Vascular Surgery
633 North Saint Clair Street, 22nd Floor | Chicago, IL 60611
Phone: 312-334-2300 | 800-258-7188
Fax: 312-334-2320
Email: vascular@vascularsociety.org

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VascularWeb® is the prime source for all vascular health and disease information, and is presented by the Society for Vascular Surgery®. Its members are vascular surgeons, specialists, and vascular health professionals who are specialty-trained in all treatments for vascular disease including medical management, non-invasive procedures, and surgery.