Appendix F ‐ Charter of the Investments Committee

Adopted January 17, 2019

A. Purpose. The Investments Committee shall provide strategic direction and oversight, make recommendations to the Board, and take action pursuant to delegated authority on matters pertaining to University investment strategy and operations, and pertaining to the review and reporting of investment results.

B. Membership/Terms of Service. The identity, appointment and terms of service of Committee members shall be as specified in Bylaws24.4 through 24.6.

C. Special Requirements for Members/Advisors. Except as specifically provided in this Charter, neither the Committee nor any of its members or advisors shall direct or attempt to direct the University’s internal or external investment managers with regard to the selection of specific investments, specific funds or specific investment managers. The role and authority of such members and advisors shall be limited to providing general direction though policy and to monitoring and reporting investment results.

D. Delegated Authority Over Appointments and Compensaton. The Committee may approve the appointment of or compensation for an employee of the Office of the Chief Investment Officer, other than the Chief Investment Officer, whose compensation is paid solely from sources other than state general fund support to the University, without further review or approval by the Board.

E. Other Oversight Responsibilities. In addition to the responsibilities assigned to the Committee described above, the charge of the Committee shall include reviewing and making recommendations to the Board with regard to the following matters and/or with regard to the following areas of the University’s business:

• Investment policy and strategy
• Physical asset management (e.g. real estate held as investments)
• Investment accounts/custodian relationships
• Retirement system investments
• Endowment funds investments
• Short term and liquidity investments
• Investment operations
• Investment results and reporting
• Endowment administration cost recovery
• Endowment total return expenditure
• Campus Foundations investment reporting
• Determination of asset classes
• Asset and risk allocation policy
• Selection of benchmarks

The assignment of responsibilities to this Standing Committee under Paragraphs D and E signifies that it is the Committee to which matters otherwise appropriate for Board consideration generally will be referred and does not create an independent obligation to present a matter to this Standing Committee, to the Board or to any other Committee.

F. Expert Advisors. The Committee shall have the authority to retain independent investment experts and advisors, as necessary to conduct the business of the Committee. The Committee shall include at least three and no more than five non-voting advisory members (in addition to Chancellors) with expertise relevant to the work of the Committee. One advisory member shall be a represented employee of the University of California with expertise in investments and one shall be from a campus foundation. Any advisors not otherwise subject to University policy, shall be subject to the laws and policies applicable to Regents governing compensation and reimbursement of expenses, and shall be subject to conflict of interest disclosure and recusal obligations as specified in the University’s Conflict of Interest Code and other applicable policies.

G. Reporting. In addition to the reports required under Bylaw 25.8, the Committee shall report to the Board any material developments in the University’s investments operation and in the University’s investment portfolio.