This includes bonds for all corporate and U.S. government debt with a minimum maturity of seven years. All investments, including pension funds such as the university s, are based on a balance between risk and return. The new asset allocation plan shifts slightly the investment mix to a more conservative position. The fund is expected to continue performing favorably when judged against the appropriate benchmarks. This concern has been raised because the investment guidelines link a portion of the university's equity investments to companies included in the Russell 3000 index, which contains a wide variety of stocks, including those of conglomerates that own tobacco companies.
Regents have the ability to exclude university investments in individual stocks.
The issue is under review and may be placed on the Sept. 2000 meeting agenda. After extensive discussions, Treasurer Small and the Board of Regents concluded it was reasonable for her to pursue other opportunities. In light of her long service and entitlements, a settlement was provided to assist in this transition. A nationwide search will be conducted for a new treasurer, who will serve under a new structure that calls for aligning the administrative portfolio under the supervision of the Office of the President. The investment portion of the treasurer's portfolio will continue to be managed by the Board of Regents.