Regents Policy 6201: Investment Reporting for the University of California Campus Foundations

Approved March 19, 2009
Amended March 29, 2012
Amended March 15, 2018

POLICY SUMMARY/BACKGROUND

The Regents authorize the Investments Subcommittee to conduct an annual review of investment performance. The Office of the Chief Investment Officer of the Regents is available to provide investment management services, without charge, for any campus foundation which requires such service.

POLICY TEXT

Delegation to Campus Foundations and Statement of Policy
The Administrative Guidelines for Campus Foundations provide that each Campus Foundation Board of Directors has the duty to develop an appropriate investment policy for such Foundation. It is the policy of the Regents that each Campus Foundation shall develop and follow an appropriate investment policy, and shall act as a prudent investor in accordance with applicable law, using a portfolio approach in making investments and considering the risk and return objectives of the endowment funds. A Campus Foundation may hold and invest endowments and funds functioning as endowments on a long-term basis. All such investments must be consistent with the terms of the gift instrument. Investment operations shall be conducted in accordance with prudent, sound practices to ensure that gift assets are protected and enhanced and that a reasonable return is achieved, and with due regard for the fiduciary responsibilities of the Foundation's governing Board and the Regents. Financial activities of a Campus Foundation shall be administered and reported in accordance with prudent business practices and generally accepted accounting principles.

Annual Performance Review and Reporting 
The investment consultant of the Office of the Chief Investment Officer shall review, annually, as well as upon initial adoption of, and upon any change to each Foundation's investment policy, including:

• Asset allocation relative to its policy,
• Performance by asset class and relative to its benchmarks, and provide a report to the Investments Subcommittee annually on their findings.
• In addition, on an annual basis, beginning with the Fiscal Year 2006-2007, the investment consultant of the Office of the Chief Investment Officer will review the written investment policies and governance structure of each Foundation to ensure that each set of written policies includes, at a minimum:
  • Asset allocation target percentages,
  • Ranges for each asset class,
  • Policy benchmarks for each asset class and in total,
  • Investment guidelines for each asset class

The investment consultant of the Office of the Chief Investment Officer will raise any issues of concern with the campus foundations, Office of the Chief Investment Officer, and subsequently, if necessary, with the Investments Subcommittee.

If any Foundation approves changes to its investment policy (including but not limited to asset allocation targets and policy benchmarks), it must communicate such change to the Office of the Chief Investment Officer.

NO RIGHT OF ACTION

This policy is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the University of California or its Board of Regents, individual Regents, officers, employees, or agents.