THE UNIVERSITY OF NORTH CAROLINA AT ASHEVILLE



                                      FACULTY SENATE



                                         Senate Document Number  3390S    



                                         Date of Senate Approval 3/29/90 





        Signature of Senate Chair _______________________ Date __________



        Action of Vice Chancellor:



              Approval _______________________  Date ______________



              Denied   _______________________  Date ______________



        Reasons for denial and suggested modifications:





















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        Statement of Faculty Senate Action: 



                             IDC #5:  Endowment Funds



             The University Planning Council views with concern the

        historically low rates of spendable income that have been realized

        on the investment of UNCA Foundation endownment funds and

        recommends that the Foundation Investment Committee establish

        policies to maximize returns consistent with prudence and safety.

        We are also concerned that fees paid to outside agencies to manage

        endowment funds have been out of proportion to the rate of return

        realized, further reducing investment income.  We recommend that

        the policy of using an outside investment management advisor be

        reviewed.  We further request that the Vice Chancellor for

        University Relations include information on these two issues in the

        Fall report to the Faculty Senate.