UC Board of Regents committee reviews investment performance

The University of California’s investment portfolios yielded a 7.1 percent net positive return for the period ending in March, according to a report presented at a regents committee meeting.

The UC Board of Regents Committee on Investments held a teleconference with the Investment Advisory Group Wednesday to review the financial performance of the UC’s $99.5 billion investment portfolios.

The regents also voted to approve an increased fixed income from 30 to 50 percent, which includes government bonds.

Jagdeep Singh Bachher, the UC’s chief investment officer and vice president of investments, said declining interest rates and volatility in global financial markets made investment decisions difficult in the past period.

As a result, the committee increased active investments by 15 percent, which contributed to the higher net positive gain. Active investment involves constantly buying and selling risky investments to ensure higher returns.

Regent Paul Wachter, chair of the Committee on Investments, then discussed the issue of climate change and sustainable investment.

When Student Regent-designate Avi Oved asked whether it would translate to a change in policy, Wachter said the committee intends to develop a business plan for investing in sustainable solutions. He added he wants to reach out to stakeholders and encourage them to invest in sustainable energies, but the committee will not yet make a policy change.

Bachher said they are also aiming to launch an independent fund pursuing investment in UC research-fueled enterprise, called UC Ventures, by fall of 2015 or winter of 2016. Bachher said more than 7 percent of the entire fund will be directed towards UC-focused innovation.

Compiled by Shreya Maskara and Sierra Desousa, Bruin reporters.