Sunday, September 13, 2015
Listen to Regents' Committee on Investments, Sept. 9, 2015
There was a public comment period in which there was a call for coal and fossil fuel divestment. But as it turned out, the headline of the event (about which we previous posted) was the announcement by Bachler that UC had sold off its direct holdings of coal and oil sands companies. We provide a separate link to that discussion below for you convenience. The sell off was repeatedly justified in economic terms, e.g., the regulatory climate was unfavorable to these companies. Bachler later said his sustainability policy is what is needed as opposed to a list of things he should not hold ("no exclusionary list"). There is a fog of ambiguity around all of this; sometimes what is being done is just good economics and sometimes it has a social function.
Finally, at the tail end of the discussion, Bachler seemed to agree that the projected earnings for the UC pension should be something like 6%/annum rather than the current 7.5%. Such a change would substantially raise the measured unfunded liability. (We note, as we have before, that the actual unfunded liability will depend on actual earnings in the future which will be what they will be regardless of how they are projected at any point in time.)
The audio of the entire session (around two hours) is at the link below:
The coal and oil sands divestment can be heard at the link below: