Monday, September 12, 2016


The University of California posted a 3.4 percent investment loss on its $9.1 billion endowment in the year ended June 30, the office overseeing investments for the 10-campus system said Friday.
The losses were driven by poor returns from public equity fund managers and hedge funds, Jagdeep Bachher, the chief investment officer, said at an investment committee meeting Friday. The value of the endowment rose to $9.1 billion from $8.9 billion from the year prior because of inflows from shifting cash from short-term funds to the endowment, as well as royalty payments, he said.
“This has been a disappointing year for endowments,” Bachher said.
The office oversees a total of $97.6 billion of assets, including the endowment and pension funds. The university’s pension posted a 2 percent loss for the year. The endowment gained an annualized 6.5 percent over the past 5 years and an annualized 5.9 percent over the past 10 years.
“We are faced with a low-growth and low-return environment going forward and are working closely with our stakeholders to set realistic return expectations for the future,” Bachher said in a statement...
Note: There was much rumination about all of this at the Regents' Committee on Investments. We'll get to that once yours truly hears the entire meeting and archives the recording. In the meantime, the question is:

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