The University of California’s (UC) captive insurance assets remained at $0.9 billion as of 30 June 2018, despite its total assets under management growing to $118.7 billion, up $8.9 billion over a year ago.
The $118.7 billion is spread across six different financial products, the endowment ended the year at $12.3 billion (up $1.5 billion), the pension at $66.8 billion (up $5.2 billion), working capital at $14.4 billion (up $0.2 billion), the retirement savings programme at $24.3 billion (up $2 billion), and captive insurance at $0.9 billion (no change).
UC CIO Jagdeep Singh Bachher said that the university has taken a “conservative and defensive risk positioning while seeking a wider range of investment opportunities”.
He added: “The team and I have focused on deepening our 100 active partner relationships with every facet of the university and beyond.”
“A culture of collaboration is our ultimate competitive advantage.”
Chair of the investments committee, Richard Sherman, said UC’s returns were solid this year.
Sherman commented: “Returns were positively impacted by the global equity markets and we continue to have a pretty sizable exposure.”
“We ended the year with a significant amount of cash, and though it was higher than our long-term allocation target, it effectively acts as a hedge on an equity market that was very long in the rally.”
UC president Janet Napolitano said: “The UC investments office has kept a close eye on costs while continuing to deliver the strong investment results we seek.”
