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[[underlined]] Minutes of the Investment Policy Committee [[/underlined]]

The Investment Policy Committee of the Board of Regents convened in Washington on Thursday, November 7, 1985 at 2:00 p.m. Attendance was as follows: [[underlined]] Members of the Investment Policy Committee [[/underlined]] - Carlisle H. Humelsine, Acting Chairman; William R. Salomon, Donald Moriarty, Charles H. Mott, T. Ames Wheeler; [[underlined]] Smithsonian Staff [[/underlined]] - Robert McC. Adams, Secretary; Dean W. Anderson, Under Secretary; Ann R. Level, Treasurer; John R. Clarke, Assistant Treasurer; [[underlined]] Special Consultant [[/underlined]] - Hunter Lewis, Cambridge Associates, Inc.

[[underlined]] South Africa [[/underlined]]

At the request of the Acting Chairman, Miss Leven reviewed the latest developments with respect to the Smithsonian's investments in companies doing business in South Africa. As outlined in the materials distributed prior to the meeting, the Smithsonian has joined the South Africa Research Consortium. The Consortium is a loose association of 37 colleges and universities working together to gather more information about the impact of direct and indirect investments in South Africa.

Miss Leven explained that a great many colleges and universities are considering divestment. The majority have taken no action other than to intensify their efforts to understand corporate views vis-à-vis the Sullivan Principles. Mr. Lewis pointed out that consideration of the South African issue appears to be centered in New England, on the West Coast, and in the industrial Midwest.

Miss Leven stated that the Institution will continue to stay abreast of developments through the information available from groups such as the South Africa Research Consortium and the Investor Responsibility Research Center (IRRC). Fiduciary Trust, Torray and Batterymarch all have access now to IRRC data. All three advisors are following guidelines for domestic investments set by the Regents in June, specifically that new investments should be only in those corporations that are subscribers to the Sullivan Principles or have no business interests in South Africa.

Mr. Humelsine questioned whether it might make sense for the Committee to order Batterymarch to divest the Trustees Commingled Fund - International Equity Portfolio, particularly given the concerns expressed by the Congress and in light of the substantial appreciation of this investment. Mr. Lewis suggested the Institution ask Batterymarch to review its stance on foreign investment. The committee concurred. [Subsequent to the meeting, the Treasurer called Batterymarch to elicit their views on foreign investments. The advisor still maintains its enthusiasm for the international equity market as an important diversification of the Institution's holdings.]