University of Virginia Library

RESPONSE FROM THE FINANCE COMMITTEE OF THE BOARD OF VISITORS TO
THE PROPOSAL MADE BY THE AD HOC INVESTMENT POLICY RESEARCH COMMITTEE
OF THE STUDENT COUNCIL

Mr. Robert Hatcher reported to the Board the following response of the Finance Committee to the proposal made by the Ad Hoc Investment Policy Research Committee of the Student Council:

In fulfilling its fiduciary responsibility, the Board must act in a prudent manner on all investment matters. The Board believes that the University's endowment is not a forum for advancing social and moral causes, however, it naturally has concern with regard to the integrity and policies of organizations with which it associates in the course of its activities. This concern extends to the companies in which the University has an investment interest.

The Board has previously adopted a proxy voting policy which provides for consideration of proxy petitions received from individuals or groups within the University community. In doing so, the Board has recognized the need to examine and study social issues raised in shareholder proxy proposals. Few petitions have been received during the past three years in part because of the difficulty members of the community experience in monitoring and evaluating the many proxy issues which arise each year. The report of the Student Council Ad Hoc Investment Policy Research Committee indicates that there remains strong interest within the University community in proxy issues involving social responsibility in investments. The Board is appreciative of the interest of the Student Council and its public and intends to seriously study their

proposition. With the help of the administrative staff of the University, the Finance Committee will take under advisement the preliminary recommendations of the Student Council Ad Hoc Investment Policy Research Committee. I would ask that Student Council understand that their report is presented to the Board of Visitors where sits seven new Members to the Board who are not all that familiar with our procedures and are not in a position to come to any quick decisions on matters of such great import. The Board will give earnest consideration to this matter, and the Finance Committee will discuss the proposal at its next meeting this spring.