Repository: UIHistories Project: Board of Trustees Minutes - 1990 [PAGE 338]

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326

BOARD OF TRUSTEES

[July 11

following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Grabowski, Mrs. Gravenhorst, Mr. L a m o n t , Ms. Reese, Mrs. S h e p h e r d ; no, n o n e ; absent, G o v e r n o r Edgar, Mr. Wolff. ( T h e student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.) Authorization for Payden & Rygel Investment Counsel (15) On February 13, 1991, the Board of Trustees received a report on a review of the University of Illinois short-term funds investment program performed by Ennis, Knupp & Associates, Inc. T h e report outlined several recommendations for clarifying and enhancing the short-term investment program of the University. One of the recommendations was to hire an intermediate-term fixed-income manager to invest approximately $50 million of the University's portfolio. In March, Ennis, Knupp 8c Associates, Inc., was engaged to perform a manager search in order to select the best investment manager for this role. T h e search process evaluated a broad array of investment managers and recommended five managers that, in the consultant's opinion, best met the selection criteria and needs of the University. These five firms were interviewed by University financial personnel and further evaluated to produce a single recommendation. T h e recommended investment manager is Payden 8c Rygel Investment Counsel, Los Angeles, California, a female-owned and -operated investment organization. T h e firm specializes in the management of short-term fixed-income securities and has an excellent performance record. In addition, Payden 8c Rygel offers the lowest fee schedule 1 and is willing to tailor a portfolio to meet the specific needs of the University. T h e comptroller requests authority to establish an investment account with Payden 8c Rygel Investment Counsel for the purposes described and that the following resolution be adopted. I concur. Resolution Be It Resolved, that the Comptroller of the Board of Trustees of the University of Illinois is authorized to enter into agreements with Payden & Rygel Investment Counsel to provide investment management services. Be It Further Resolved, that the Comptroller is authorized from time to time to designate in writing to Payden 8c Rygel Investment Counsel those officers, employees, and other agents of the University of Illinois authorized to give written or verbal instructions on behalf of the University of Illinois. Be It Further Resolved, that each of the foregoing resolutions shall continue in force until express written notice of its recision or modification has been received by Payden 8c Rygel Investment Counsel. O n motion of Mr. Boyle, authority was given as requested and t h e foregoing resolution was a d o p t e d by t h e following vote: Aye, Dr. Bacon, Mr. Boyle, Mrs. Calder, Mr. Grabowski, Mrs. Gravenhorst, Mr. L a m o n t , Ms. Reese, Mrs. S h e p h e r d ; no, n o n e ; absent, G o v e r n o r Edgar, Mr. Wolff. ( T h e student advisory vote was: Aye, Ms. Caporusso, Mr. Mitchell; no, none.)

1 T h e annual fee is 2 0 / 1 0 0 of 1 percent on the first $50 million of the average daily funds invested at cost.