Young Life Foundation

1
Young Life Foundation
Cash Management Strategy
Portfolio Characteristics
The Cash Management Strategy is a
custom-tailored, high quality, short duration
strategy designed to deliver superior
risk-adjusted returns over comparable money
market funds. The strategy seeks to provide a
high current yield with modest principal
volatility. By utilizing both fixed rate and
floating rate securities, this strategy is
designed to protect principal values during
rising interest rate environments while earning
higher relative returns when rates are declining.
Within well-defined ranges, sector allocations
are dynamic and depend upon the economic outlook,
FOMC policy, and the slope of the yield curve
from 0-12 months. The Cash Management Strategy
is a conservative, disciplined low-risk strategy
that employs quality parameters and risk
constraints which are strictly adhered to at all
times. While small fluctuations in the value of
the strategys underlying securities do occur,
this strategy is appropriate for those assets
with the lowest tolerance for risk. Accordingly,
the Cash Management Strategy is suitable for
assets with an investment horizon of 0 to 12
months.
Maximum Average Duration
0.60 Years Maximum Average Maturity
0.75
Years Minimum Average Credit Rating
AA Maximum to Below Investment Grade
0 Yield to Maturity
5.45
Sector Allocation (As of July 24, 2006)
Maturity Distribution
0 to 3 months
3 to 6 months
6 to 12 months
2
Young Life Foundation
Capital Preservation Strategy
Recommended Target Allocation
The Capital Preservation Strategy is designed to
achieve a steady rate of return with the lowest
volatility. This strategy is most appropriate for
conservative portfolios with an investment
horizon of 12 to 24 months and which need to
emphasize income and principal stability over
capital growth. This strategy is most appropriate
for conservative portfolios and/or those with a
need for higher current income. The primary
investment objective of this strategy is the
preservation of capital investment return is
secondary. Accordingly, this strategy maintains
a heavy emphasis on bonds (fixed income),
primarily those of the highest credit quality
(AAA rated). The bond component is maintained
between 65-85 of assets. As a result, this
strategy produces a higher-than-normal income
stream. In addition, the equities used in this
strategy, which typically average about 25 of
total assets, are biased toward value-oriented
styles and those companies paying attractive
dividends.
Manager Selection
Asset Allocation
Strategic Implementation
Manager Selection
Atlantic Trust - Taxable
65.0
Bonds
65.0
Fixed Income
65 - 85

Vanguard Institutional Index 500
16.0
Equity
15 - 35


Columbus Circle Mid Cap Growth
5.0
U.S. Large Cap
16.0
U.S. Large Cap
5 - 20
JP Morgan Mid Cap Value
3.0
U.S. Mid Cap
8.0
U.S. Mid Cap
5 - 10
Harbor International
4.5

International
11.0
International
0 - 15
Fidelity Diversified International
2.5
First Eagle Overseas
4.0

Hatteras Multi-Strategy
0.0
Alternatives
0.0
Multi-Strategy Fund-of-Funds
0.0

Total
100
100.0
100.0




3
Young Life Foundation
Balanced Strategy
Recommended Target Allocation
The Balanced Strategy is designed to provide a
blend of (1) current income with moderate
volatility and (2) long term capital
accumulation. The risk/return profile of this
strategy is appropriate for portfolios with an
intermediate term investment horizon (2 to 5
years). This strategy is designed to provide for
the growth of capital, yet with less volatility
than a portfolio dedicated exclusively to
equities. Bonds (fixed income) represent a
meaningful 40-60 of total assets at all times.
Equities typically represent about 50 of total
assets and a healthy balance is maintained
between the growth and value styles, as well as
between the domestic and international markets.
Companies with larger market capitalizations are
emphasized over mid-cap and small-cap companies.
Manager Selection
Asset Allocation
Strategic Implementation
Manager Selection
Atlantic Trust - Taxable
40.0
Bonds
40.0
Fixed Income
40 - 60

Vanguard Institutional Index 500
31.0
Equity
40 - 60


Columbus Circle Mid-Cap Growth
9.0
U.S. Large Cap
31.0
U.S. Large Cap
20 - 35
JP Morgan Mid Cap Value
5.0
U.S. Mid Cap
14.0
U.S. Mid Cap
5 - 20
Harbor International
6.0

International
15.0
International
5 - 20
Fidelity Diversified International
3.0
First Eagle Overseas
6.0

Hatteras Multi-Strategy
0.0
Alternatives
0.0
Multi-Strategy Fund of Funds
0.0

Total
100
100.0
100.0




4
Young Life Foundation
Balanced Growth Strategy
Recommended Target Allocation
The Balanced Growth Strategy is designed to
provide current income and above-average capital
appreciation consistent with average levels of
volatility. This strategy is most appropriate
for portfolios (1) with a reasonable tolerance
for risk, (2) without a need for high levels of
current income, and (3) with an investment
horizon of 5 to 7 years. The bond (fixed
income) component of this strategy is maintained
in the 20-50 range and is designed to provide
the liquidity and income necessary to meet
immediate needs. The bond allocation also serves
to dampen the overall volatility. Bonds never
represent less than 20 of total assets, yet the
bias of this strategy is clearly on growth.
Equities can represent up to 75 of total assets
and are diversified between growth and value as
well as domestic and international. Alternative
investments will represent a meaningful portion
of the portfolio.
Manager Selection
Asset Allocation
Strategic Implementation
Manager Selection
Atlantic Trust - Taxable
23.0
Bonds
23.0
Fixed Income
20 - 50

Vanguard Institutional Index 500
35.0
Equity
50 - 75


Columbus Circle Mid-Cap Growth
11.0
U.S. Large Cap
35.0
U.S. Large Cap
25 - 45
JP Morgan Mid Cap Value
6.0
U.S. Mid Cap
17.0
U.S. Mid Cap
10 - 25
Harbor International
6.5

International
16.0
International
5 - 20
Fidelity Diversified International
3.5
First Eagle Overseas
6.0

Hatteras Multi-Strategy
10.0
Alternatives
5 - 15
Multi-Strategy Fund of Funds
10.0

Total
100
100.0
100.0




5
Young Life Foundation
Growth Strategy
Recommended Target Allocation
The Growth Strategy is designed to provide the
highest total return over time consistent with an
emphasis on capital appreciation in a diversified
portfolio. This strategy has above-average
volatility and is appropriate for those who are
willing to invest a majority of their assets in
equities. Due to the increased risk-reward
characteristics of equities, the Growth Strategy
is only appropriate for those assets with a long
term investment horizon (7years). Equities
play the most prominent role in this strategy,
typically representing 70-85 of total assets.
Bonds average about 15 of total assets and do
provide some liquidity, current income, and
dampening of the portfolio's overall level of
volatility. The emphasis on equities is
consistent with an objective of capital
appreciation, yet maintaining diversification
within the equity component is equally important.
Large capitalization stocks are emphasized, but
all markets caps are represented and
diversification between domestic and
international stocks is maintained. Alternative
investments also play a role by providing
additional diversification and exposure to
investment strategies with little or no
correlation to the equity markets.
Manager Selection
Asset Allocation
Strategic Implementation
Manager Selection
Atlantic Trust - Taxable
13.0
Bonds
13.0
Fixed Income
10 - 30

Vanguard Institutional Index 500
36.0
Equity
70 - 85


Columbus Circle Mid-Cap Growth
13.0
U.S. Large Cap
36.0
U.S. Large Cap
30 - 50
JP Morgan Mid Cap Value
8.0
U.S. Mid Cap
21.0
U.S. Mid Cap
15 - 35
Harbor International
7.0

International
18.0
International
5 - 25
Fidelity Diversified International
4.0
First Eagle Overseas
7.0

Hatteras Multi-Strategy
13.0
Alternatives
5 - 15
Multi-Strategy Fund of Funds
13.0

Total
100
100.0
100.0