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Thursday, September 15, 2011

Making Money?


Above are two charts prepared for the Regents meeting which show the rates of return for various investment funds. You can see on the lower slide that UCRP (pension) has earned around 5% per annum over the last ten years ending June 30, 2011. That is less than the assumed rate of 7.5%. The upper slide shows an annual rate of 9.35% over twenty years, above the assumed long-term 7.5% rate. (Also shown on the lower slide are the rates for the GEP = General Endowment Pool and the STIP = Short Term Investment Pool.) The full set of charts is available at http://www.universityofcalifornia.edu/regents/regmeet/sept11/i1attach1.pdf

Obviously, the long-term rate that actually emerges is critical. The question is, as always, are we making (enough) money?

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