The University of California (UC) investment portfolios added $ 38 billion in the fiscal year ending June 30 to bring the value of their assets to $ 168 billion, an increase of 28 billion. 9% compared to the previous year. This is the largest gain over one year in the history of the foundation.
The investment portfolios include the UC endowment, which brought in 33.7%, and its pension, which increased by 30.5%.
The endowment attributed the record returns to the strong performance of its private and public equity investments, which returned 58.7% and 41.1%, respectively, during the year.
“In many ways, the past year has been intense and humbling,” CIO Jagdeep Singh Bachher said in a statement. “Beyond the tumult of the pandemic, social and geopolitical unrest, with the effects of climate change in relief, we have taken bold steps to seize the unique opportunities offered by a booming market. “
UC portfolios have grown by $ 73.1 billion, or 77% since 2014, when Bachher was appointed CIO of the university system. Since then, the UC Investments team has also generated $ 5.2 billion in returns against its benchmarks and saved $ 2.2 billion in costs by reducing its number of outside managers and increasing co -direct investments in companies. UC Investments said it has reduced the number of its main external partnerships to 50 today, down from 280 in 2014.
The university’s general endowment was worth $ 19 billion as of June 30, an increase of $ 5 billion from the previous year and an increase of $ 10.7 billion, or 129%, since 2014 The one-year net return was 33.7%, which exceeded that of its benchmark. 4.2%, and its three-, five- and ten-year annualized returns were 14.9%, 13.7% and 9.9%, respectively. Over the longer term, the endowment has delivered 20, 25 and 30 year annualized returns of 7.8%, 8.9% and 9.7% respectively, all of which exceeded their political benchmarks.
The value of the assets of the University of California pension plan increased by $ 20.8 billion from a year ago, thanks to a year-over-year net return of 30.5%, or 2% above its benchmark. The pension has three, five and 10 year annualized returns of 12%, 11.6% and 8.9%, respectively. Over the longer term, the pension has 20, 25 and 29 year annualized returns of 6.9%, 8.1% and 9%, respectively, all of which have met or exceeded their benchmarks. Investments in private and public equities were also the best performing asset class for pension plans, returning 54.7% and 41.8% respectively for the year.
“Jagdeep and the UC Investments team, working entirely remotely, have remained calm and focused,” UC Regent Investments committee chair Richard Sherman said in a statement. “We ended up significantly changing our asset allocation – increasing our exposure to equities – in the midst of the pandemic. It turned out to be the right decision.
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