The VSU Foundation knows more than 98% of climate scientists,
and also sneers at former divestment from tobacco and apartheid companies.


Nevermind that

fossil fuel divestment is going faster than either of those.
Is it good fiduciary responsibility to stay invested in the stranded investments
of fossil fuel stocks while

solar stocks are skyrocketing?
Is this really how to encourage people to

give to VSU?
Is that how

the alumni
want their investments used?

Seen today on

S.A.V.E.’s facebook page,

VSU Foundation’s response
to

S.A.V.E.’s fossil fuel divestment request:

October 29, 2013

Danielle Jordan, President

S.A.V.E.

Valdosta State University

Dear Ms. Jordan,

The Investment Committee of the VSU Foundation Board of Trustees has
reviewed the request from your organization that securities issued
by companies engaged in the production of fossil fuel energy be
excluded from the foundation’s endowment portfolios. Compliance with
your well-intentioned request is impractical for a number of reasons
and perhaps even a breach of the fiduciary responsibility that all
of our trustees take very seriously.

The various VSU Foundation endowment portfolios are managed on a
discretionary basis by multiple asset management firms within the
parameters of a specific allocation model carefully constructed by
our committee using the advice and expertise of our lead asset
manager, Ladenburg Thalmann. During the ongoing process of
active asset management, portfolio managers must be granted the
discretion to move into and away from any sector of the economy they
wish as long as they remain consistent with their individual
mandates and objectives. It’s possible that abridging this freedom
of movement could adversely impact overall investment performance,
but more importantly, it could impact the ability of asset managers
to control overall investment risk. The endowment’s value to the
university, its students, and its faculty is something that we are
unwilling to jeopardize.

The marketers of “socially responsible” investing,
always anxious to promote a particular investment process, change
their approach from time-to-time. Years ago it was all about
alcohol, tobacco, firearms, and apartheid. Now it’s about
anthropogenic climate change. In the interest of intellectual
honesty, I suggest you read some critiques of the UN report you cite
in your letter. You’ll have no trouble finding them.

It is the desire of the VSU Foundation to financially support the
university to the utmost of our ability and to let “social
responsibility” and the “reduction of human
suffering” flow forth from the university’s success in
accomplishing its mission over the many years to come. This, in our
judgment, is the best and highest use of the assets with which we are
entrusted.

Sincerely,

[signed]

Wayne Edwards

Chairman

VSU FOUNDATION, INC.

PHONE 229.333.5939
—
TOLL FREE 800.464.3638-i
—
FAX 229.259 2553
—
WEB www.valdosta.edu/adv
—
ADDRESS 1500 N Patterson St
—
Valdosta. GA 31698-0213

LOCATION 3rd Floor
—
Continuing Education Building
—
903 N. Patterson St.


A Regional University of the University System of Georgia and
an Equal Dpportunity institution

-jsq