UCLA Shifts Asset Allocation

(April 22, 2010) — The University of California Retirement System has changed the asset allocation of its $63 billion retirement and endowment funds portfolio.

The Office of the Treasurer manages the $36.5 billion University of California Retirement Plan (UCRP) and the $5.8 billion General Endowment Pool (GEP). According to HFMWeek, the revised plan will consist of a 0.5% investment each in real assets and opportunistic investments.

In the long-term, the plan will target 3% investment in real assets, while looking to reduce its long-term absolute return allocation to 6.5% from 10%, as well as its US equity allocation.

By the end of 2009, the university had invested across Europe-focused event driven equity, relative value credit, event driven credit and global macro. GEP and UCRP’s hedge funds include Tiger Capital Management, Satellite Asset Management, the O’Connor Global Fundamental Fund, York Capital Management, Och Ziff and Ivy Asset Management, HFMWeek reported.

Previously, an April 5 study by Stanford University’s Institute for Economic Policy found that the University of California Retirement System along with the California Public Employees’ Retirement System (CalPERS), and the California State Teachers’ Retirement System (CalSTRS) were as much as $500 billion short of meeting future retiree benefits.