UT regents OK spending to widen asset oversight
LA MONICA EVERETT-HAYNES
The Houston Chronicle
August 14, 2004
The University of Texas System's regents Thursday approved spending $ 509,500 to hire financial and legal advisers to help them monitor the company that oversees the system's assets.
Regents also approved changes to the company's bylaws, contracts and policies and will begin having annual meetings with the University of Texas Investment Management Co. The Austin-based nonprofit company manages $ 16 billion in endowments and other assets for the UT System, A&M University System and other institutions.
The change comes less than three months after regents passed a resolution that endorsed greater scrutiny of the investment company.
"It will permit the board and the system to more effectively perform its investment-related fiduciary duties," Chancellor Mark Yudof said Thursday during the board's meeting.
The system plans to hire Chicago-based Ennis Knupp & Associates and a director of investment oversight. The system also may hire a staff lawyer.
Michael Warden, executive director for the UT System's public affairs, said the changes won't require additional money from the state or universities.
Yudof said the changes are critical and will lead to a "relationship built on clarity, transparency, accountability and susceptibility."