Thursday, January 17, 2019
Listen to the Regents Sessions of Jan. 15, 2019
There were two Regents sessions on Tuesday, Jan. 15. The Investments Subcommittee session included a presentation summarizing the UCLA Anderson Forecast by Jerry Nickelsburg. Thereafter, there was the usual review of portfolio developments including the pension and endowment. The Bloomberg story below summarizes that part of the session.
The Special Committee on Basic Needs session is summarized below the Bloomberg article by a Bruin piece.
University of California Assets Fell $9 Billion in Market Rout
By Michael McDonald
January 16, 2019, 9:25 AM PST, Bloomberg
Stock market turmoil in the fourth quarter hit the University of California’s retirement and endowment assets, which fell $9 billion in the period, according to the state system’s investment office.
Total assets were $114 billion at year end, the office reported at a Jan. 15 board meeting. Losses were concentrated in the public equity portfolio, which was $53.1 billion, or 47 percent of assets, down from 52 percent on Sept. 30.
The S&P 500 Index dropped about 14 percent last quarter on concerns over rising rates and geopolitical uncertainty in the U.S. and Europe.
The endowment lost 3.7 percent in preliminary investment performance for the six months through Dec. 31, according to the office. The pension fund declined 4.9 percent in the period. The state system is on a fiscal year that ends June 30.
Jagdeep Bachher, the university’s chief investment officer, said the returns were mainly the result of poor stock performance.
“Our goal is to remain conservative through these times,“ Bachher said in a video broadcast of the meeting. “Just stay cautionary.”
After public equities, fixed income in the state system’s portfolio made up about a third of the assets on Dec. 31, with the rest allocated to alternatives such as hedge funds, private equity, real estate and other real assets and cash.
There was a strong pipeline of private investments in the last six months of 2018, Edmond Fong, senior managing director overseeing absolute return, said at the meeting. In the fourth quarter, 40 percent of new investments in the endowment were in private equity and another 40 percent in hedge funds, he said.
...Special Committee on Basic Needs
On Tuesday, Student Regent Devon Graves said the goal of the committee is to produce a report after two years that provides an overview of basic needs at UC campuses and discusses ways in which the campuses and the UC Office of the President are helping to solve these issues.
UCOP Associate Vice President of Student Affairs Jerlena Griffin-Desta said all UC campuses had established basic needs committees.
Student Regent-designate Hayley Weddle recommended the committee examine the intersection between federal and state policy and basic needs insecurity across the UC, consider what data are needed to properly understand and address food and housing insecurity, and explore long-term funding strategies to support basic needs resources...
Full story at http://dailybruin.com/2019/01/17/uc-regents-recap-jan-15-16/
Listen to the Investments Subcommittee at:
Or go direct to Investments:
and to Basic Needs:
We'll get to yesterday's session later. But I might note that two of the three morning official recordings provided by the Regents cut off before the sessions ended. One session in the afternoon either wasn't held or wasn't available, not clear which.
For those who can't wait, the morning sessions of Jan. 16th are at:
I will delay uploading the afternoon sessions until the situation with the missing session clears up, if it does.