The Office of the Treasurer of The Regents is responsible for managing all of the investments, cash and external financing for the University of California system. The principal activity of the Treasurer’s Office is the management of the system’s retirement, 403(b) and endowment funds, as well as the system’s cash.
At June 30, 1997, the Treasurer’s Office managed approximately $40.3 billion in total assets.
The Treasurer’s Office carries out all investment activities according to the policies established by the Investment Committee of The Regents of the University of California. The Treasurer’s investment staff includes 17 senior investment professionals with an average of 17 years of investment experience.
Administration of HIP:
UCOP Administrative Expense:
Annual expense of 0.04% of the average market value of the pool. Expense is prorated and levied monthly.
Custody of Assets:
State Street Bank & Trust Company, The Regents’ custodian.
Administration of Account:
The Treasurer’s Office is responsible for investing the funds, with the Corporate Accounting Office maintaining all records.
Deposits and Withdrawals:
Monthly; transactions can be made by check or federal funds wire.
Distributions:
Annually (monthly for Foundations if requested); income only, based
on the number of shares owned.
300 Lakeside Drive, 17th Floor
Oakland, CA 94612-3550
Tel. (510) 987-9600
Fax. (510) 987-9617
http://www.ucop.edu/treasurer
The
High
Income
Pool
Office of the
Treasurer
of The Regents
June 30, 1997
HIGH INCOME POOL (HIP)
June 30, 1997
The High Income Pool (HIP) was established in March 1986 to accommodate: (1) endowments with high initial payout requirements and (2) deferred gift programs with high contractual payout obligations. Although the General Endowment Pool (GEP) is The Regents’ primary endowment investment vehicle, HIP provides an investment alternative for donors contributing to University fundraising organizations.
HIP, or a combination of HIP and GEP, may serve a donor’s immediate need for a higher payout. Participants may later migrate HIP assets to GEP to provide faster growth in both capital and income.
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Investment Objective: Produce a relatively high and stable level of income, with moderate growth of income and preservation of capital |
Investment Objective: The overall investment objective for all funds under management is to maximize real,
long-term total returns (income plus capital appreciation adjusted for inflation), while assuming appropriate levels of risk.
For HIP, the primary goal is to produce a relatively high and stable level of current income sufficient to meet the needs of the endowed projects.
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Investment Strategy: Balanced portfolio emphasizing fixed-income securities and higher-yielding common stocks |
Investment Strategy: HIP is a balanced portfolio targeting investments in select global securities that produce a relatively high level of income, with moderate growth of income and principal. The Treasurer varies the asset mix based on the relative attractiveness of the asset classes.
Asset Mix: HIP’s assets totaled $88.4 million at June 30, 1997. The portfolio consisted of 64% bonds, 34% high-yield equities and 2% cash. Sixty-eight percent (68%) of these assets were in domestic (U.S.) securities, while 32% were in select foreign securities.
Returns and Yields: HIP’s current yield at June 30, 1997 was 6.5%, and its historical income payout has grown at an average rate of 3.1% for the past nine years. HIP’s annualized net total return from inception through June 30, 1997 was 12.3%.
Annualized Total Returns
June 30, 1997
|
Net HIP1 |
Gross SEI2 |
Inflation3 |
|
|
1 Yr |
16.0% |
17.2% |
2.7% |
|
5 Yr |
11.9% |
11.7% |
2.1% |
|
10 Yr |
12.3% |
10.8% |
3.0% |
Notes: (1) HIP’s cumulative returns are net of (after) expenses (0.04% of average annual market value). (2) SEI Corp. measures investment returns on approximately 3,150 portfolios, with $364 billion in assets. The SEI return (above) represents the linked median returns of a hypothetical portfolio invested 60% bonds and 40% common stock. These are gross returns and are before any investment charges, which would be approximately 0.50% of average annual market value. (3) Inflation as measured by the GDP Deflator.