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Monday, September 27, 2021

Only Good News Tomorrow

When the Regents meetings kick off tomorrow, there will be just Good News from the Investments Committee. Excerpt:

UC Pension Estimated to Be 94 Percent Funded on Market Value Basis. 

The UC pension stood at $91 billion as of June 30, 2021, up $20.8 billion from the prior year and representing an increase of $38.9 billion since 2014 (a 75 percent increase). The one-year net return was 30.5 percent (2.0 percent over the benchmark). The three-year return was 12 percent, the five-year return was 11.6 percent and the seven-year return was 8.5 percent. The ten-year return was 8.9 percent, the 20-year return was 6.9 percent, and the 25-year rate, 8.1 percent, and the 29-year rate is nine percent. Over these time frames, all returns were at or above the policy benchmarks.

Private equities in the pension returned 54.7 percent and public equities returned 41.8 percent for the year. The pension liabilities as of June 30, 2021 stood at approximately $97 billion (estimated), making the pension funded at an estimated 94 percent on a market value basis and 83 percent on an actuarial basis. The current pension discount rate is 6.75 percent. Since 2014, UC Investments has added $2.1 billion in value to the pension beyond the benchmark and saved $1.4 billion in fees.

UC Investments has been investing the pension for 62 years and today it has 250,976 members, 54 percent of them active.

Full investment report at https://regents.universityofcalifornia.edu/regmeet/sept21/i1.pdf.

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