University of Wisconsin Policies on Trust Fund and Investments that are being violated by investing these companies.

 

TRUST AND INVESTMENT POLICIES

UNIVERSITY OF WISCONSIN SYSTEM REGENT POLICY DOCUMENTS

http://www.uwsa.edu/bor/rpd/2004%20Regent%20Policies.pdf

 

78-1 INVESTMENT OF TRUST FUNDS

History: Res. 1590 adopted 2/10/78; replaces 77-4. (See also 78-2.)

In accordance with Sec. 36.29(1) Wis. Stats., all investments "made in any company, corporation, subsidiary or affiliate which practices or condones through its actions discrimination on the basis of race religion, color, creed or sex. . . ." shall be divested in as prudent but rapid a manner as possible.

 

78-2 INTERPRETATION OF POLICY 78-1 RELATING TO DIVESTITURE

History: Res. 1615 adopted 3/10/78; amended by Res. 6626, 3/94.

The Board of Regents, to facilitate the implementation of Regent Resolution 1590 (RPD 78-1), interprets that resolution as follows:

1. The words "which practices or condones through its actions" shall be interpreted to mean "employing persons in nations which by their laws discriminate on the basis of race, religion, color, creed or sex."

2. Divestiture shall be accomplished in a prudent manner, in accordance with the following criteria:

A. The availability of alternative investments of equal or better potential long-term investment return.

B. Current valuation in relation to historical relationships and alternative investments including, in the case of equities, the following factors:

1. current yield, price earnings ratio, price to book value ratio, earnings and dividend growth rates, both absolutely and in relation to the market as a whole.

2. present fundamental status of the company in terms of current and future earnings and dividend outlook.

3. current level and trend of stock market -- outlook for the next 3, 6 or 12 months.

4. "technical" status and current price trend of stock (absolute and relative to market).

5. unrealized gain or loss on the stock.

3. The University of Wisconsin System's investment counsel and its Trust Officer shall bring to the attention of the Business and Finance Committee reports of the existence of laws in any other country that require companies doing business in such country to practice or condone discrimination on the basis of race, religion, color, creed or sex. The Business and Finance Committee shall investigate such reports with a view to determining whether Resolution 1590 shall be applied to investments in companies employing persons in the country in question.

 

97-1 INVESTMENT AND SOCIAL RESPONSIBILITY

History: Res. 7406, adopted March 7, 1997.

That, upon recommendation of the Business and Finance Committee, the Board of Regents of the University of

Wisconsin System in discharging its fiduciary responsibilities for the University Trust Funds will take into account its concerns about corporate responsibility as outlined below.

1. The primary fiduciary responsibility of the Board of Regents is to maximize financial return on invested assets, taking into account an appropriate degree of risk.

2. However, the Board acknowledges the importance of maintaining an awareness of public concerns about corporate policies or practices that are discriminatory (as defined by 36.29(1) Wis. Stats.) or cause substantial social injury,* and it will take this factor into account.

3. To enhance the Board’s awareness of social concerns the Regents through the Business and Finance Committee will direct UW System Administration to subscribe to a proxy review service which will highlight proxy resolutions related to discrimination and substantial social injury.*

4. The Regents wish to solicit input from students, faculty, alumni and citizens on matters related to social concerns. To obtain this input, the Business and Finance Committee of the Board of Regents will schedule an annual forum at which concerns can be presented by interested parties. This forum will offer the broadest opportunity for System constituencies to present information to the Board of Regents.

5. The Regents are aware that a position on social responsibility may affect potential contributors to the

University System. For potential contributors who wish their donations to be invested in funds with social concerns as a high priority, the Business and Finance Committee will ask UW Administrative Staff to explore the use of Investment alternatives to meet such objectives.

 

* “Substantial social injury” with regard to corporate behavior is defined as the injurious impact on employees, consumers, and/or other individuals or groups resulting directly from specific actions or inactions by a company.

Included in this category are actions that violate, subvert, or frustrate the enforcement of rules of domestic or international law intended to protect individuals and/or groups against deprivation of health, safety, basic freedoms or human rights. Only actions or inactions by companies that are ...

 

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