University Spokeswoman Cass Cliatt wrote WPRB this morning, pointing us towards a 1997 report (which she had previously mentioned in comments for our first story on Zimbabwe investments) titled Guidelines for Resources Committee Consideration of Investment-Driven “Social Responsibility” Issues.
The report states that:
For the most part the Trustees have delegated the responsibility for selecting specific investments to outside money management professionals. These professionals are provided with a detailed investment policy statement that describes our basic investment goal of maximizing the total long-term return on the endowment consistent with acceptable levels of risk. Quite deliberately they have not been asked to take into account any non-economic social, political, or moral guidelines other than those few South Africa-related limits explicitly approved by the Board of Trustees. The Trustees expect that, in carrying out this assignment, the investment managers will vote on all shareholder resolutions in a manner consistent with the overall investment objective of maximizing the total long-term return on those investments, rather than seeking to achieve some separate social objective. Continue reading