May 1, 2007
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS
ENDOWMENT MANAGEMENT COMMITTEE
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Members Present:
Michael J. Cemo, Chair
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Members Absent: Calvin W. Stephens, Secretary |
The University of Houston System Board of Regents Endowment Management Committee meeting convened in Room 220 E. Cullen, University of Houston, on Tuesday, May 1, 2007. Noting the presence of a quorum, Chairman Cemo called the meeting to order at 2:08 p.m.
Chairman Cemo turned the meeting over to Dr. Rudley, who introduced Item B, Overview of the Endowment Fund – UH System. Dr. Rudley complimented Raymond Bartlett, Treasurer for the UH System, for implementing a new format and preparing the UH System Report on Endowment Fund and Non-Endowed Funds Report as of March 31, 2007. Dr. Rudley then turned the meeting over to Bruce Myers of Cambridge Associates for his report.
Mr. Myers gave an overview of the Discussion Materials distributed at the meeting.
- As of March 31, 2007, the endowment has returned 2.9%, 12.2%, and 7.6% for the quarter and trailing 1 and 5 years, respectively. These results outperformed the Cambridge portfolio benchmark of 2.3%, 12.1%, and 7% for the quarter and trailing 1 and 5 years, respectively.
- Changes were discussed to the endowment investment policy. Proposed changes involve streamlining the portfolio rebalancing process. The suggested changes will be submitted at the May 17, 2007 board meeting for approval.
- Cambridge also discussed ways to increase the absolute return allocation to its 7.5% target. It was decided by the committee to maintain the current allocation at 5.1% and reevaluate the options within this asset class at the end of the fiscal year.
- The committee approved $3 million investment in Commonfund Capital Venture Partners, VIII. This item will be placed on the May 17, 2007 board agenda for approval.
- The committee also agreed to change Smith Graham’s mandate from intermediate government/credit to core fixed income and to rebalance the bond portfolio to equally weight funds between Smith Graham and the other core fixed income manager, Wells Capital.
- Cambridge gave a brief update on recent personnel changes that occurred at Arnhold & S. Bleichroeder during the first quarter. Mr. Charles de Vaulx, the portfolio manager of the First Eagle Fund, left the firm and has been temporarily replaced by Jean-Marie Eveillard, the funds original portfolio manager.
- The UH System’s non-endowed investments was discussed. Cambridge was asked to prepare a review of the non-endowment fixed income manager for discussion at the July 31, 2007 meeting.
Regent O’Connor moved approval of the items as presented. Regent Cemo seconded the motion, which passed unanimously. The committee will present the items requiring board approval at the May 17, 2007 meeting.
There being no further business to come before the committee, the meeting adjourned at 3:20 p.m.
All documentation submitted to the Board in support of the foregoing action items, including but not limited to “Passed” agenda items and supporting documentation presented to the Board, is incorporated herein and made a part of these minutes for all purposes; however, this does not constitute a waiver of any privileges contained herein.
| Others |
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Jay Gogue
John M. Rudley Donald Foss Dona Hamilton Raymond Bartlett Joe Kotarba Wynne Chin Bruce Myers Hamilton Lee Janis Newman Desi Miller Gerry Mathisen |
