Regent Policy Documents

SECTION 31: TRUST AND INVESTMENT POLICIES

31-7 INTERPRETATION OF POLICY 31-6 RELATING TO DIVESTITURE

(Formerly 78-2)

The Board of Regents, to facilitate the implementation of Regent Resolution 1590 (Policy 32-6), interprets that resolution as follows:

  1. The words "that 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:
    1. The availability of alternative investments of equal or better potential long-term investment return.
    2. 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.

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

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The Regent Policy Documents were adopted and are maintained pursuant to the policy-making authority vested in the Board of Regents by Wis. Stats. § 36. The Regent Policy Documents manifest significant policies approved by the University of Wisconsin System Board of Regents. This document is a ready reference for those charged with carrying out these policies. Unless noted otherwise, associated documents and reports may be obtained from the Office of the Secretary of the Board of Regents, 1860 Van Hise Hall, 1220 Linden Drive, Madison, WI 53706, ph 608-262-2324. http://www.uwsa.edu/bor/policies/