September 22-23, 1980
09-22-1980
Pages 18-20
BOARD OF REGENTS
UNIVERSITY OF NEVADA SYSTEM
September 22, 1980
The Board of Regents met in special session on the above date to
consider recommendations concerning investment matters.
Members present: Mrs. Lilly Fong
Mr. Chris Karamanos
Mrs. Molly Knudtsen
Mr. John R. Mc Bride
Mrs. June F. Whitley
Others present: Chancellor Donald H. Baepler
President Joseph N. Crowley, UNR
President Judith Eaton, CCCC
President Leonard Goodall, UNLV
Vice Chancellor Larry Lessly
Mr. Bob Lee, First National Bank
Secretary Bonnie Smotony
Mr. Lee recommended the following sales be made, at market, in
order to take profits and reduce equity exposure in the port-
folio:
MAIN ENDOWMENT FUND
Approx. Approx. Antic. Mkt. Gain Units
Security Price Value Income Yield (Loss)
15M Par Holiday Inns CVT 9-5/8%, due 2005
149 $ 22,350 $ 1,558 7.0 $ 7,425
225M Par Shearson Loeb Rhoades Cvt 9%, due 2005
Convert into Common Stock
3700 Aluminum Co. of America
67 247,900 11,840 4.8 24,037
5903 El Paso Co's 23-1/2 138,720 8,736 6.3 44,010
4000 Exxon 71 284,000 20,800 7.3 132,724
500 Gannett 52 26,000 1,000 3.9 3,000
3800 Litton Industries
65 247,000 4,560 1.8 49,000
5000 May Company Department Stores
26 130,000 7,700 5.9 4,483
7100 Quaker Oats 31 220,100 9,240 4.2 13,277
2200 Texas Instruments
128 281,600 4,400 1.6 89,490
5800 Sun Co's 39 226,200 10,440 4.6 7,917
4700 United Technologies
50 235,000 9,680 4.1 18,190
$2,058,870 $89,954 4.4 $393,553
MC MILLAN ENDOWMENT
20M Par Shearson Loeb Rhoades Cvt 9%, due 2/1/05
127 $ 25,400 $ 1,800 7.1 $ 6,900
150M Allied Chemical
52 7,800 330 4.2 234
250 American Can 33 8,250 725 8.8 ( 1,843)
400 Libbey Owens Ford
24 9,600 940 9.8 ( 2,253)
200 American Home Products
30 6,000 340 5.7 544
400 Associated Dry Goods
24-1/2 9,800 600 6.1 ( 396)
$ 66,850 $ 4,735 7.1 $ 3,186
ENGEL UNITRUST
5M Par Holiday Inns Cvt 9%-5/8, due 2005
149 $ 7,450 $ 481 6.4 $ 2,475
20M Par Shearson Loeb Rhoades Cvt 9%, due 2005
127 25,400 1,800 7.1 5,775
300 First Charger Financial
10-1/2 3,150 240 3.9 1,067
150 American Can 33 4,950 435 8.8 ( 230)
200 Quaker Oats 31 6,200 280 4.5 455
200 Reynolds Metals
37 7,400 440 5.9 267
100 United Technologies
50 5,000 220 4.4 490
$ 59,550 $ 3,896 6.2 $ 10,299
Mr. Lee noted that the one exception in the recommendation to
sell concerns the Shearson Loeb Rhoades convertible bonds. These
bonds have been called at $109; however, they are currently trad-
ing at $149. The options are either to sell at the market price
or convert to common stock. He recommended the $225,000 held by
the main endowment fund be converted and the $20,000 held by the
Mc Millan Endowment and the $20,000 held by the Engel Unitrust
be sold at market, explaining that the latter two funds have sub-
stantial income requirements which cannot be met by the conver-
sion to common stock.
Mrs. Fong moved approval. Motion seconded by Mrs. Whitley,
carried without dissent.
Bonnie M. Smotony
Secretary of the Board
09-22-1980