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

Chairman McHenry introduced the following report of the Investment Policy Committee and referred to the probable impact on the endowment caused by the recent slide in the stock market.  He drew the Regents' attention to the proposed motions (presented in the report as approved) and led a brief discussion of the Committee's Investment Guidelines, revised for the first time since 1978.

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At its spring meeting the Investment Policy Committee determined that the Institution should seek new investment counsel.  Chairman Barnabas McHenry and Committee members Moriarty, Mott, Salomon, and Leven met twice during the summer to interview four prospective managers from a potential list of fourteen:  Miller, Anderson and Sherrerd; Rosenberg Capital Corporation; Hagler, Mastrovita and Hewitt; and Bessemer Trust.

SELECTION OF NEW INVESTMENT MANAGER

After consultation with all members of the Committee, Chairman McHenry informed Miller, Anderson and Sherrerd of their selection as the Smithsonian's newest investment manager.  Miller, Anderson and Sherrerd is a well established privately held investment management firm specializing in the handling of non-profit and pension fund accounts.  The firm currently has $9.4 billion under management for 76 clients including Cornell University, The John Hopkins University, The W. Alton Jones Foundation, the American Museum of Natural History, and the Federal Reserve Employee Retirement Plan Trust.