Repository: UIHistories Project: Board of Trustees Minutes - 1992 [PAGE 29]

EXTRACTED TEXT FROM PAGE:

1992]

UNIVERSITY OF ILLINOIS Percent of Target Allocation 50 10 5 65 35 100

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Percent of Management Mode Active Passive — 50 10 — _b_ — 15 50 35 — 50 50

Asset Category Domestic Equity Foreign Equity Real Estate Equity Total Fixed Income Total

Diversification The endowment portfolio will be broadly diversified across and within asset classes in order to minimize the impact of losses in individual investments. Liquidity The University will advise investment managers of any anticipated need for liquidity as such needs become known. Investment managers are to presume no liquidity needs other than those provided to it by the University. Rebalancing The endowment portfolio will be rebalanced at least quarterly to keep asset classes within 20 percent of the target allocation. Restrictions The University shall not invest in corporations included on the Investor Responsibility Research Center directory of corporations with a direct investment in South Africa. Investment Objective and Performance Evaluation The investment objective is to preserve the purchasing power of both the endowment pool corpus and the income stream provided by the corpus. The total endowment pool rate of return will be compared with: (1) a weighted-average of the returns of broad market indices representing the asset classes in the target asset allocation established by the Board of Trustees; (2) the returns of a universe of funds with similar policies; and, (3) a measure of relative purchasing power.

Resolution

Be It Resolved, that the Comptroller of the Board of Trustees of the University of Illinois is authorized to enter into agreements with Scudder, Stevens, and Clark to provide investment management services. Be It Further Resolved, that the Comptroller is authorized from time to time to designate in writing to Scudder, Stevens, and Clark 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 rescission or modification has been received by Scudder, Stevens, and Clark.

On motion of Dr. Bacon, these recommendations were approved and the foregoing resolution was adopted by the following vote: Aye, Dr. Bacon, Mr. Boyle, Mr. Downey, Mr. Grabowski, Mrs. Gravenhorst, Mr. Lamont, Ms. Reese, Mrs. Shepherd; no, none; absent, Mrs. Calder, Governor Edgar. (The student advisory vote was: Aye, Mr. Begovich, Mr. Lawless; no, none.)