Exhibit 2
Miami University—Non-Endowment (Tier 3)
Policy Allocation Targets, Ranges and Benchmarks
June 2018
| Asset Category | Policy Allocation | Policy Ranges (-,+) |
Benchmark Indices | |
|---|---|---|---|---|
| Equities—U.S. | 27.0% | -10.0% | +10% | Russell 3000 Index |
| Equities—Non-U.S. | 18.0% | -10.0% | +10% | MSCI World ex-US Investable Market Index (IMI) (Net) 2 |
| Equities—Emerging Market | 9.0% | -9.0% | +10% | MSCI Emerging Market Index (Net) 2 |
| Equities—Total | 54.0% | -10.0% | +10% | |
| Alternatives—Hedge Funds (NET)4 | 12.0% | -12.0% | +10% | HFRX Equal Weighted Strategies Index |
| Alternatives—Hedge Funds (Gross)4 | 22.0% | -22.0% | +5% | |
| Alternatives—Portable Alpha Overlay4 | 22.0% | -22.0% | +5% | |
| Alternatives (Net)—Total3,4 | 12.0% | -12.0% | +10% | |
| Real Assets—Real Estate | 3.0% | -3.0% | +5% | NCREIF Fund Index - Open End Diversified Core Equity Index |
| Real Assets—Commodities | 3.0% | -3.0% | +6% | S&P GSCI Total Return Index |
| Real Assets—TIPS | 4.0% | -4.0% | +6% | Bloomberg Barclays 1-10 Year U.S. TIPS Index |
| Real Assets—Total | 10.0% | -7.0% | +13% | |
| Fixed Income—U.S. Investment Grade Fixed Income5 | 21.5% | -15.0% | +10% | Bloomberg Barclays U.S. Aggregate Index |
| Fixed Income—U.S. High Yield Bonds | 2.5% | -2.5% | +10% | BofA Merrill Lynch High Yield Cash Pay Index |
| Fixed Income—Non-U.S. Fixed Income | 0.0% | 0.0% | +10% | Citigroup Non-USD World Government Bond Index Hedged |
| Fixed Income—Total4 | 24.0% | -10.0% | +10% | |
| Cash | 0.0% | 0.0% | +20% | Citigroup 3 Month Treasury Bill Index |
| Total | 100% | |||
Footnotes
1The Policy Benchmark will be reported both gross and net of assumed passive management fees and rebalancing costs.
2Indices are net of dividend withholding tax.
3(Net) indicates that allocations are net of portable alpha strategies. The maximum gross allocation to hedge funds, including those overlaid in portable alpha strategies, is 27%.
4U.S. Fixed Income includes physical holdings of Treasuries, corporates and synthetic fixed income achieved through portable alpha strategies.
5For purposes of assessing compliance with the minimum of the policy range, fixed income will be deemed to include the allocation to cash.
6The targeted annual standard deviation range is 10-12%.