 | Board of Visitors minutes October 11, 1985 |  |
STATEMENT OF THE BOARD ON THE REPORT OF THE PROXY ADVISORY COMMITTEE
The Board of Visitors is grateful to the Proxy Advisory Committee for its thorough review and analysis of the many facets of the divestment issue. In acknowledging its report we would like to express our sincere appreciation to Mr. Levenson and the Committee members and to recognize formally the untiring manner and dedication in which the Committee has undertaken its study of the question. We acknowledge receipt of petitions and other communications from various groups within the University community and have taken them into consideration in formulating this statement.
As with most members of the University community the Board of Visitors is unanimous in its condemnation of apartheid. The Board has also been cognizant of the concerns within the University community regarding investment of endowment assets in companies doing business in South Africa. For more than four years the Finance Committee of the Board has been acting on proxy resolutions relating to business activities in South Africa based on the studied recommendations of the Proxy Advisory Committee.
The Board has reviewed the report of the Proxy Advisory Committee to the President, heard Mr. Levenson's summary of that report and heard the President's description of the process that could be employed to implement the Committee's recommendations.
As the Committee report so well explains, immediate and complete divestment would be neither practical nor responsible, and would impinge upon the Board's fiduciary responsibilities for the funds subject to its control.
On the other hand, the Board does not wish to be perceived as supporting apartheid and, consequently adopts the Committee's recommended case-by-case approach. Today's holdings in companies which might be studied amount to less than 10% of the endowment portfolio.
It is the intent of the Board for the University to retain its responsibility for the investment of its endowment assets. If the University has an investment in a company which is clearly shown to be acting in a manner which in the Board's judgment lends support to the apartheid system in South Africa, the Board will address the disposal of the investment. To adopt a policy of complete divestment would constitute an improper use of the University endowment fund for political purposes, an irresponsible action in this case, as it would be in others that may arise in the future.
To this end the President is instructed to have the Proxy Advisory Committee, with the assistance of the University's Investment Office, assess carefully information provided to it in the normal course of its activities as well as other information brought to its attention, and after following the process suggested by the Committee and President today, file reports from time to time with the President containing findings, conclusions and recommendations. The Finance Committee will carefully consider such reports along with comments from the administration and make its recommendations to the full Board for action.
| Board of Visitors minutes October 11, 1985 | |