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Jeremy H. Biggs, speaking for Fiduciary Trust, commented that he anticipates higher interest rates and a lower market, and that their investment position is the most conservative since 1981. They have made some investments in bonds but feel no rush to put cash reserves into equities. With regard to stock selection, the firm feels that 1984 could be the reverse of 1983, with most money likely to be made in the second half. Within stocks, 1983 was the year of technology, transportation, small growth and cyclicals; in 1984, it is likely to be defensive, high yield, large growth, financial, and inflation hedge. 

The Committee expressed its appreciation for the presentation of the several managers.
 
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Endowment Funds Income Payout Policy
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In accordance with the Endowment Funds Income Payout Policy adopted by the board in January 1979, the Investment Policy Committee is to recommend to the Board a rate of income payout to endowment funds for the succeeding fiscal year. Factors to be considered in its recommendation are: (1) 4-1/2% of the five-year adjusted running market average; (2) current interest and dividend yield; (3) support needs of the bureaus and scientists; and (4) inflationary factors. Background on these factors is contained in the attached paper which was circulated to the Committee in advance of its meeting. After consideration of these factors, the Investment Policy Committee recommended to the Board that in FY 1985 the total return income payout to unrestricted, designated and restricted endowment funds be increased by 10% from the current rate (to a new rate of $5.50 for unrestricted funds, and $7.41 for restricted and designated endowment funds). No increase was recommended to the special payout rate of $9.00 approved by the Regents in December 1983 for major new endowments with high current income needs.