The Department is responsible for investing in hedge funds globally and directly. The objectives of the department are to identify the most efficient sources of Alpha with capital preservation and low correlation to traditional asset class indices such as the S&P 500 and the MSCI World. Additionally the Department is responsible for achieving returns that outperform the Hedge Fund indices in the long run with low volatility and high liquidity. KIA recognizes the difficulty of outperforming the market on a consistent basis, so searches for managers with high integrity, sound investment philosophies, strong track records, superior organizations, and sustainable competitive advantages. Managed accounts are structured with performance-related incentive fees, hurdle rates, and claw- back provisions as appropriate. The department is pursuing these objectives through portfolio diversification and strategy, style and geographical exposure, low to medium volatility HF Portfolio, investment in funds with a proven track record of at least three years and maximum allocation of ten percent to any underlying fund manager, and no use of leverage at HF Portfolio level.