Mrs. Mary Atkins, age 66, has been your firm's client for five years, since the death of her husband, Dr. Charles Atkins. Dr. Atkins had built a successful newspaper business that he sold two years before his death to Merit Enterprises, a publishing and broadcasting conglomerate, in exchange for Merit common stock.

The Atkinses have no children, and their wills provide that upon their deaths the remaining assets shall be used to create a fund for the benefit of Good Samaritan Hospital, to be called the Atkins Endowment Fund. Good Samaritan is a 180-bed, not-for-profit hospital with an annual operating budget of $12.5 million.

In the past, the hospital's operating revenues have often been sufficient to meet operating expenses and occasionally even generate a small surplus. In recent years, however, rising costs and declining occupancy rates have caused Good Samaritan to run a deficit.

The operating deficit has averaged $300,000 to $400,000 annually over the last several years.

Existing endowment assets (that is, excluding the Atkins's estate) of $7.5 million currently generate approximately $375,000 of annual income, up from less than $200,000 five years ago.

This increased income has been the result of somewhat higher interest rates, as well as a shift in asset mix toward more bonds.

To offset operating deficits, the Good Samaritan Board of Governors has determined that the endowment's current income should be increased to approximately 6% of total assets (up from 5% currently).

The hospital has not received any significant additions to its endowment assets in the past five years.

Identify and describe an appropriate set of investment objectives and constraints for the Atkins Endowment Fund to be created after Mrs. Atkins's death