October 31, 2007
UNIVERSITY OF HOUSTON SYSTEM
BOARD OF REGENTS MEETING
| Members Present: | Members Absent: |
|
Welcome W. Wilson, Sr., Chair
Calvin W. Stephens, Vice Chair Jim P. Wise, Secretary Leroy L. Hermes Michael J. Cemo Lynden B. Rose |
Dennis D. Golden
Raul A. Gonzalez Morgan Dunn O’Connor Christopher Sharpe |
The University of Houston System Board of Regents meeting convened in Room 220 E. Cullen, University of Houston, on Wednesday, October 31, 2007. Noting the presence of a quorum of the Board, Chairman Wilson called the meeting to order at 12:10 p.m.
Chairman Wilson stated since there was not a quorum of the Audit Committee present and there were no pressing Audit Committee issues on the agenda, Mr. Guyton recommended the Audit Committee items be deferred and placed on the November 15, 2007, Board meeting agenda for consideration by the board.
Chairman Wilson then recessed for the Endowment Management Committee meeting and stated he would like to take the items out of order and discuss Item C, Real Estate Investment – UH System and turned the meeting over to Regent Cemo.
Regent Cemo called the Endowment Management Committee meeting to order at 12:11 p.m. and turned the meeting over to Jim McShan, who introduced this item for information. The committee discussed local real estate investment opportunities for the endowment fund. There was no action taken on this item.
Regent Cemo thanked Mr. McShan and turned the meeting over to Mr. Bruce Myers, from Cambridge Associates, who gave an overview of the endowed funds. Mr. Myers stated despite an unsteady market in August, the market rebounded substantially in September. Large and mid-cap stocks managed to finish the quarter on a positive note, though small cap stocks lost ground during the third quarter. Mr. Myers also stated that for the first time in a number of years, the trailing 12-month performance for more defensive growth stocks had outpaced value stocks across the capitalization spectrum.
Mr. Myers stated that hedge funds will be reviewed at the next scheduled meeting in February 2008. Regent Cemo then turned the meeting over to Mr. Hamilton Lee, from Cambridge Associates, who gave an overview of the non-endowed funds. The committee discussed ways on how the university can allocate the university’s non-endowed funds; and after reviewing the three different allocations with the committee, Cambridge Associates recommended Plan A – Portfolio “A” – 40-40-20.
The new manager guidelines for the new allocation to Alliance Bernstein, as well as, the existing investment with Luther King Capital Management were discussed.
Also mentioned at the meeting was the investment policy for non-endowed funds. Cambridge Associates suggested the policy be modified to add additional language to Section II (Investment Objectives) and Section III (Investment Types) of the policy. It was also suggested that the committee expand the authorized investments to include an investment of up to 20% of the non-endowed funds in the UH System endowment fund.
Regent Wise moved that this item be presented to the board and Regent Cemo seconded the motion, which passed unanimously. This item will be brought forward to the board for approval at the November 15, 2007, board meeting.
There being no further business to come before the committee, the meeting adjourned at 2:05 p.m.
After hearing the Endowment Management Committee report, Chairman Wilson convened to a full board meeting.
Pursuant to Subchapter D of Chapter 551 of the Texas Government Code, which allows governing boards to meet in closed session, the Board of Regents went into Executive Session at 2:06 p.m. The Board reconvened the meeting at 2:37 p.m.
EXECUTIVE SESSION REPORT
Chairman Wilson announced that General Counsel, Ms.Cornell, discussed property issues. Chairman Wilson stated that no action was taken by the Board at Executive Session.
In absence of further business, the board adjourned at 2:37 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 Present: |
|
John M. Rudley
Donald Foss Jim McShan Dona Cornell Michael Rierson Raymond Bartlett Joe Kotarba Janis Newman Bruce Myers Hamilton Lee Liza Navarro Mayra Cruz Gerry Mathisen |
