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The report of the Investment Policy Committee summarized market performance to date of the Institution's investment managers. The Committee recommended changes in both the total return income payout policy for endowment funds (attachment B) and the investment guidelines for the managers (attachment C). 

VOTED that the Board of Regents accepts the recommendation of the Investment Policy Committee that the Total Return Income Payout Policy of the Smithsonian be amended as follows: Prior to the beginning of each fiscal year, the Secretary and the Investment Policy Committee will propose to the Board of Regents, as part of the budget process, a set amount per unit which will be the total return income payout to participating endowment fund units in the succeeding year; this amount will take into account such factors as, but not limited to: (1) 4-1/2% of the five-year adjusted running market averages, (2) current dividend and interest yield, (3) support needs for bureaus and scientists, and the (4) inflationary factors as measured by the Consumer's Price Index. For FY 1979, this figure shall be $4.74 per unit, the same amount as in FY 1978, 

and 

further VOTED that the Board of Regents approves the revised statement of investment objectives recommended by the Investment Policy Committee for the guidance of the investment managers. 

The Regents passed a formal resolution authorizing a contract with an investment management firm required by merger of firm into larger financial institution:

VOTED that the Board of Regents accepts the recommendation of the Investment Policy Committee and authorizes the Secretary to contract with Fiduciary Trust Co. to act as investment manager for the Institution pursuant to the investment guidelines approved by the Board of Regents. 

It was agreed that the Investment Policy Committee should make a recommendation on whether the Institution could appropriately and advantageously invest other than in securities, such as land, etc. 

[[underlined]]Belmont House Property[[/underlined]]

The Secretary outlined the history of the acquisition of this 18th century estate, now used by the Institution as a modest-sized conference center, and discussed with the Regents the possible sale of this property in the event that a buyer makes an appropriate offer. The factors relating to such a sale were suggested.