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The Committee authorized the Treasurer to hold further discussions with Fiduciary Trust and if she found a demonstrable benefit to the portfolio to bring the matter back to the Committee.

Mr. McHenry then began a discussion of the principal topic on the agenda, namely the overall asset strategy for the entire portfolio, given recent market trends. He stated his own feeling that a stronger position in fixed income would seem to be a trend that the Committee should examine closely. He stated that his preference would be to hire an additional fixed income manager to attain this new balance. This would require a downwards adjustment in the amounts manager by both Nova and Batterymarch. He also felt that a proper balance as between equities and fixed income would be about fifty percent each, which, while conservative, would seem timely.

Mr. Mott agreed with the Chairman that the time has probably come for a shift in the asset mix. He pointed out that the Institution's total return performance over the last fifteen years has averaged about sixteen percent, or about five percent better than the usual indices over the same time frame.

Since the portfolio has been so heavily oriented towards equities during that time, a shift back towards fixed income, perhaps with a range established for Miller Anderson and Fiduciary Trust of forty-five to seventy-five percent in stocks at any one time, would be a very timely action. Mr. Mott also felt that the investment guidelines for certain managers perhaps should be restated to give the managers a stronger sense of what they were going to be measured against.

Mr. Moriarty agreed with Mr. McHenry that the addition of a small to medium sized fixed income specialist manager was a good strategy for further risk diversification. He thought it likely that a balancing by the present managers (except Batterymarch and Nova, being purely equity managers) to about fifty-fifty was likely to occur anyway, as evidenced by the downwards shift in equity holdings to slightly over sixty percent from about eighty percent as of a year ago. He also suggested that an overall allocation range for the total portfolio should be determined prior to giving specific rangers to specific managers. He pointed out that using Mr. Mott's suggested range, should the Institution go this way, the whole Consolidated Fund would reflect about a twenty percent minimum and about a forty-five percent maximum holdings in fixed income instruments. He also pointed out the Committee's traditional reluctance to give specific asset allocation instructions to the managers as a means of maximizing return, which has been a very successful approach to date.

Mrs. Gould believes that if the Committee desires to amend the investment guidelines, it would be far better to have a clear statement of long term investment objectives around which the portfolio could then be fashioned. She also felt that a range such as suggested by Mr. Mott was a little too wide and that a general goal of about fifty-fifty was an appropriate target in the present market environment.

Mr. Adams thanked the Chairman for the opportunity to express his views, but stated that regardless of his views in these matters, the