Repository: UIHistories Project: Board of Trustees Minutes - 1988 [PAGE 580]

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570

BOARD OF T R U S T E E S

[June 9

express written notice to the contrary in the form of a certified copy of a subseqeuntly enacted resolution. Resolved, that this resolution shall supersede and cancel all previous resolutions relating to the custody of securities at Federal Reserve Bank of Chicago. O n motion of Miss Smith, the foregoing resolutions were adopted by the following vote: Aye, Mrs. Galder, M r . Forsyth, Mrs. Gravenhorst, Mr. H a h n , M r . Howard, M r . Logan, Mrs. Shepherd, Miss Smith; no, none; absent, M r . Wolff, Governor Thompson. ( T h e student advisory vote was: Aye, M r . Evenson, Mr. Wylie; no. none.) Authorization to Participate in a Real Estate Investment Trust (17) O n August 7, 1987, the board adopted an investment policy for the University endowment fund which would permit an investment of a maximum of ten percent of the endowment in real estate. Since that time, the Finance and Audit Committee and the vice president for business and finance have been reviewing possible real estate investments and the vice president now requests authorization to participate in Endowment Really Investors, Inc., a newly formed real estate investment trust, established by the Common Fund. The Common Fund is a nonprofit organization founded in 1971 by the Ford Foundation to provide investment management services exclusively for educational institutions and foundations. The organization currently has $3.4 billion of endowment funds under management from 555 educational institutions and foundations. Endowment Realty Investors, Inc., will provide a comprehensive real estate investment program with the following objectives: a six percent real return; a yield substantially above that of common stocks; portfolio diversification ($750 million fund, six managers, diverse strategies); and inflation protection. The fund will have a twelve-year term. Management fees are expected to be .75 of one percent annually, with an incentive fee structure for returns greater than six percent. The recommendation is that $3 million, or approximately ten percent of the endowment fund, be committed to investment in Endowment Realty Investors, Inc I concur. O n motion of Miss Smith, this recommendation was approved by the following vote: Aye, Mrs. Calder, M r . Forsyth, Mrs. Gravenhorst, Mr. H a h n , M r . Howard, M r . Logan, Mrs. Shepherd, Miss Smith; no, none; absent, M r . Wolff, Governor Thompson. ( T h e student advisory vote was: Aye, M r . Evenson, M r . Wylie; no, none.) Extension of Agreements, University Foundation a n d Alumni Association (Fiscal Year 19891 (18) On November 18, 1982, the Board of Trustees adopted revised guidelines governing certain fiscal procedures, including those between the University and University-related organizations. The University of Illinois Foundation and Alumni Association asked to be designated University-related organizations as provided in the guidelines and have operated under service agreements with the