The long-term investment policy being formulated by the Harvard Management Company will result in a gradual reduction in public utilities and the total number of companies in Harvard's portfolio.

Although specific policies have not yet been outlined in detail, the broad strategies Harvard Management will use in light of the bleak economic outlook and high rate of inflation will require a cutback in Harvard holdings in regulated companies, such as public utilities.

George Sigular, assistant to Harvard Treasurer George Putnam '49, said Friday that because public utilities cannot increase their charges to customers in line with their raising costs they are not considered good investments at this time.

Harvard's holdings in several power companies became a major issue among students and the Advisory Committee for Shareholder Responsibility last year as a result of the companies' plans to build large new power plants.