Julius & Esther Stulberg Competition Inc

Schedule D, Page 2, Part V, Line 4

“As of june 30, 2025, the board of directors has designated three different accounts for different purposes. The reserve fund was established to hold accumulated excess operating funds until they are needed because of an unexpected shortfall of revenues. The reserve fund is expected to reflect the organization's investment policy. The liquidity needs of the fund are to contain sufficient cash balances to replace a reasonable revenue shortfall. As of june 30, 2025, this account had a balance of 107,774 of which the board has identified 51,163 as a reasonable reserve. The reserve fund shall comply with the investment policy and the endowment distribution policy of the stulberg. The burdick-thorne endowment fund is an unrestricted endowment fund which is currently designated by the board of directors of the organization as an endowment fund to be used to assist in providing funding of the burdick- thorne gold medal prize. Effective with fiscal year 2023-2024 the designation was expanded so that is may also be used to support the funding of the siler medal prize and other prizes as needed. The endowment is intended to be perpetual. It is intended that this fund will exist to fulfill its purposed for the entirety of the stulberg competition. The liquidity needs of the fund are to contain sufficient cash balances to distribute the spending policy disbursement for the upcoming fiscal year. The stulberg endowment fund was established to support the ongoing operations of the stulberg competition. The stulberg fund is expected to reflect the organization's investment policy. The endowment is intended to be perpetual. It is intended that this fund will exist to fulfill its purpose for the entirety of the stulberg competition. The organization has a spending policy that allows the executive director, with board consent, to direct the investment advisor to distribute from the endowment funds, other than the reserve endowment fund, annually, 5% or less of the assets of each endowment fund applied to a 20-quarter rolling average of the market value of the assets of each endowment fund, ending on the last trading day of march. A distribution will not be allowed to decrease the market value of an endowment fund below 80% of the original gift value unless the board specifically approve otherwise. Investment return objectives, risk parameters and strategies. The organization has adopted investment and spending policies, approved by the board of trustees, for the endowment assets that attempt to grow, over the long term, in excess of the approved spending and the prevailing inflation rate. The assets are to be invested in a combination of liquid equity and fixed income holdings. The investment strategy is expected to produce net investment returns equal to, or greater than, an appropriate blended benchmark over the course of an economic cycle. The blended benchmark will consist of barclays u.s. Aggregate bond index, the s&p 500 index, the russell 2000 index and the msci acwi ex us nr usd weighted 25%, 40%, 20% and 15%, respectively. Individual asset class performance will be measured by the above specific benchmarks and individual managers will be compared to these standards. The investment strategy is expected to produce investment returns equal to, or better than, the mid-point of a peer population of similar investment approaches, over the course of an economic cycle. The investment strategy will be sensitive to various measures of risk and will attempt to keep portfolio risk near market levels.”