Job Description for Chief Investment Officer to the Regents, 2013
BACKGROUND ON THE UNIVERSITY OF CALIFORNIA
The University of California, one of the largest and most acclaimed institutions of higher learning in the world, is dedicated to excellence in teaching, research, health care and public service. It is a public institution with annual resources of nearly $23.7 billion and encompasses ten campuses, five medical schools and medical centers, three law schools and a statewide Division of Agriculture and Natural Resources. The University is also involved in the operation and management of three national laboratories for the U.S. Department of Energy. Since it was chartered in 1868, the University has conferred over 1,931,273 degrees, as of June 30, 2010.
THE ORGANIZATION
The Chief Investment Officer of the Regents and Vice President for Investments is responsible for managing all investments for retirement, endowment and cash assets for the University of California system, including UC’s ten campuses, five academic medical centers, and the Lawrence Berkeley National Laboratory. The Investments Office carries out these activities under the policies, guidelines, and performance benchmarks established by The Regents. The Office’s mission is to implement those policies and guidelines by selecting, executing, and monitoring investment strategies designed to add value over the benchmarks within a risk controlled framework. As of March 31, 2013, the Investments Office manages over $80 billion in assets. Administrative oversight of the Investments Office resides with the President of the University or his/her designee. At present, the CIO position reports to the CFO for all administrative matters.
The position reports jointly to the Regents and the President of the University.
The University of California is an affirmative action/equal opportunity employer.
RESPONSIBILITIES
The Chief Investment Officer (CIO) will be responsible for leading the Investments Office to maximize long-term total returns on UC’s investments while assuming appropriate levels of risk. The CIO will lead all aspects of investment implementation, including the development of processes and procedures, and the selection of investment products. He / she will also be responsible for delivering recommendations to the Regents, whose responsibilities center on approving investment policy, asset allocation, benchmarks, and risk budgets and guidelines.
This position is administratively responsible for approximately 55 employees.
INVESTMENTS OFFICE
The Chief Investment Officer will be responsible for providing leadership and oversight of all areas of the Investment Office, including:
Investment Management and its three sub-units (Public Equity Investments, Fixed Income Investments, and Alternative Investments):
Each group specializes in evaluating, researching, and forecasting its respective asset class. Together, these asset allocations combine to form different portfolio and fund types. Each investment fund is governed by an Investment Policy statement that identifies the key goals, philosophy, and responsibilities relating to the ongoing management of the fund’s assets; recognizes and ameliorates the agency issues among the parties responsible for various aspects of investment management; sets forth an investment structure for the fund assets; establishes formalized criteria to measure, monitor, and evaluate fund performance results on a regular basis; and encourages effective communication among all fiduciaries, including external parties engaged to execute investment strategies.
Investment Services: Oversees client relation services, operations, business management, and information technology functions for the CIO’s Office. Investment Services enables the office to complete its operations and deal with issues ranging from trade insurance, strategic counseling, systems integration, and more.
Investment Risk Management: Develops risk metrics and measures for the investment portfolio and advises on risk in asset allocation and in other areas. The primary objective of the Risk Management Team is to ensure that group’s investment and operational activities do not expose the University to potential or unexpected losses beyond The Regents’ specified risk-tolerance levels. In doing so, Risk Management identifies, measures, budgets, balances, and optimizes risk to fulfill expected return targets.
FUNDS UNDER MANAGMENT
The CIO will be responsible for leading investments in a range of assets, including (but not limited to) public equity, fixed income, private equity, and real estate. Funds under management include:
Retirement Funds: The largest pool of assets managed by the Investments Office is the University of California Retirement Plan (UCRP), a defined benefit plan with assets of $45.6 billion.
Endowed Funds: General Endowment Pool (GEP) is The Regents’ primary investment vehicle for endowed gift funds. GEP assets as of March 31, 2013 equaled $7.2 billion. These funds are separate from the campus foundations.
Short Term Investment Pool (STIP): The Short Term Investment Pool (STIP) is a cash investment pool. Cash to meet payrolls, operating expenses, and construction funds of all the campuses and teaching hospitals of the University are the major funds invested in the STIP until expended. STIP assets as of March 31, 2013 equaled $10.3 billion.
Total Return Investment Pool (TRIP): The Total Return Investment Pool (TRIP) is an investment pool which allows campuses to maximize return on their long-term working capital. TRIP assets as of March 31, 2013 equaled $4.7 billion.
For more information on the duties and responsibilities of the CIO, see Bylaw 21.4.