All funds entrusted to FEF are managed according to FEF Bylaws with reasonable prudence by registered qualified independent investment managers who are registered under the United States Investment Advisor's Act of 1940, and assume full fiduciary responsibility for all assets under management. The investment managers are monitored quarterly through FEF's Investment Committee, and biannually by the Board of Trustees. The guidelines provide the majority of investments to be in bonds or cash equivalents with some prudent exposure in equities for growth

Our conservative portfolio objective is to provide a steady total return, with the majority of the funds invested in a balanced portfolio with current income for scholarship and operating needs. This is achieved by investing in high quality, investment grade corporate and/or government bonds. We use laddered, intermediate maturities, primarily 5-6 years or less average maturity, providing us safety of principal, income, and liquidity. 35% to 80% of the portfolio will be invested in this manner

The remainder of the funds, 20%-65%, will be invested to achieve growth and to out pace inflation, and preserve the value of our dollars. This is done by investing in high quality, common and convertible stocks, mainly paying good dividends, with solid balance sheets, and history of growth. This acts as an inflation hedge, plus giving us needed liquidity. Short term assets are kept in money market funds, CD's, and other cash instruments

We feel this approach gives us needed protection and flexibility in all economic conditions minimizing the effect of adverse market conditions. Currently, all of FEF's restricted endowments are immunized in secure investment grade corporate bonds, preferred stocks and government bonds.