Annual Report Reflect


The power
of alignment.

Statement from
Jagdeep Singh Bachher
Chief Investment Officer,
and Vice President of Investments
janet napolitano

We have a renewed focus on alignment of interests; that is to align ourselves with our stakeholders and service providers to deliver the needed results in tough global financial markets.

The job of the Office of the Chief Investment Officer of the Regents (UC Investments) never changes: We work tirelessly to protect and grow the money we manage for the University of California.

We keep a laser-like focus on our key objectives:

  • To honor our UC Pension obligations to approximately 270,000 members*;
  • To help our approximately 300,000 participants in the UC Retirement Savings Program improve their retirement readiness;
  • To make payouts to about 5,400 UC Endowments; and
  • To meet the annual operating budget needs across the UC system.

It’s a big responsibility, and we are honored to fulfill it.

If we look back over the last five, 10 or even 20 years, UC Investments has done a commendable job. For example, over 20 years, we show a positive annualized net return of 7.7% in the UC Endowment and 7.2% in the UC Pension. Since its inception in 2008, the UC Working Capital (Total Return) shows annualized net returns of 7.0%. Overall, we’ve grown our total assets under management from $32.9 billion in 1996 to more than $100 billion today. The University of California has a strong financial foundation, and we are proud to have played a role in helping create it.

However, while the past has been generous to our Office and University in investment results, the present and future are presenting increasingly parsimonious pictures. The 2015-16 fiscal year brought a perfect storm of events that affected all institutional investors. This included slow growth in China, persistently low interest rates, declining oil prices, and the Brexit. As a long-term investor, we know storms come from time to time, and we are prepared to weather these markets. However, we are now in a longer-term trend of low returns driven by lower global growth. As such, even with our long time horizon, it may be difficult to achieve our stated objectives of expected investment returns in the UC Endowment and UC Pension.

The writing was on the wall back in 2014, and we took it very seriously. Rather than just accept the fate of a low-return environment and reduce our ambitions as an Office and as a University, we have spent two years proactively repositioning UC Investments for a low-return environment. We’ve been re-designing our investment organization—and even our approach to accessing investment opportunities—and we’ve started the process of restructuring our organization.

First, we realized that as a management team, we needed to come to some agreement as to our identity—both current and potential future—as an investor. During my first year as CIO, we had hours of discussions about how to articulate exactly what it is we believe about the world, what we believe about financial markets and what we see as our place therein. We ultimately turned this exercise into a formal set of “investment beliefs,” which you’ll find later in this report. These beliefs guide us in everything we do.

Next, with a renewed sense of our identity and a set of investment beliefs that we could hold, we began to consider the core operational pillars, the practical and operational versions of our more theoretical investment beliefs, that we felt might lead to a successful organization. Again, we went through a consultative process that involved our management team, but we also began to investigate the best practices of our peers and service providers and how these best practices could fit into our unique circumstance. And once again, we wrote these pillars down in a formal way so they could guide everybody in our organization (read our 10 Pillars document).

Finally, after aligning our stakeholders with our key objectives and setting out the principles of our organization coherently, we then turned to the hard work of remaking ourselves in the image of the organization we had painstakingly drawn. This has been hard work, much of it difficult to quantify as it is often about building culture. Still, to help crystallize some of what we’ve been doing, I’d like to share with you a few examples of what we’ve achieved over the past two and a half years (30 months) in terms of internal changes:

  • Products: We are now managing each of our products with bespoke strategies, which means the UC Endowment will no longer be an afterthought to decisions made for the larger UC Pension fund (or vice versa). For the first time, every client and product will get the appropriate consideration from UC Investments.
  • Collaboration: UC Investments is part of the broader UC, but the University had been an untapped resource for our organization (and vice versa). We’ve spent a lot of time rebuilding our links with the University, which has required resetting our culture toward more open and transparent communication. Today, we feel as though we are truly a part of the UC ecosystem and are seeing the benefits in our investments.
  • Risk Management: We have built a best-practice risk system, and we’re leading the development of a new agent-based system that will further bolster our understanding of our exposures in times of crisis. We believe that all of our team members are risk managers, and this is now manifesting in our systems and policies.
  • People: We are nothing without talented people. As such, we have designed a new compensation policy that will allow us to recruit top talent, while appropriately aligning them to the long-term success of our organization. We sought to strike a balance between the market demands for a performance based compensation system and the perception of what’s fair in a public context. We believe we’ve achieved a good balance and the quality of our candidates for key roles continues to inspire us.
  • Data: We recognize that we need to know where we are today to be able to decide where we go tomorrow. That’s why we’ve developed a new data policy and are rolling out a new architecture. We also recognize that the next 30 years of investing will demand that we get our data in a format that we can use. There is no machine learning or artificial intelligence without clean data, and we are doing the hard work today to position ourselves for the future.
  • Simplicity: We’ve simplified our portfolios and exposures by cutting the number of active managers and their associated costs. Our baseline today is to start with an assumption of passive management to get a risk exposure we desire and then only employ active managers if they can demonstrate some ability to use a market inefficiency to generate performance.
  • Transparency: We’ve gone from a culture of secrecy to championing transparency, both internally and externally. We believe the best ideas and arrangements should be able to thrive under the bright lights. We recognize that some of what we do needs to remain confidential to prevent tipping off the broader market to our intentions or eroding a timely competitive advantage, but we always try to balance these tactical needs with our strategic belief around openness.
  • Alignment: There is a great deal of capital in the world chasing a small number of attractive opportunities. We see this as one of the great threats to our long-term performance, as the mismatch in supply and demand of capital often leads to a similar mismatch in alignment between service providers, such as asset managers and us. In our new vision for our organization, alignment is the most important factor in our success as an investor. In the pursuit of this, we have pulled out all the stops:
    • Fees and Costs: We have engaged our teams to help us get fee and cost transparency throughout our portfolio. This has helped us understand what the true incentives are in our contracts and better understand the ways in which asset managers have historically aligned with us as asset owners. The fee savings have been considerable, and our understanding of alignment of interests has improved by leaps and bounds.
    • Innovation: We’ve seeded two new funds with like-minded family offices to target unique strategies and opportunities around the globe. One fund targets energy innovation here in the United States, while the other targets technological innovation in India.

In all cases, we are developing these networks and capabilities because we want to develop unique access to the best performing funds. We want to cultivate a reputation for adding value to our partners and have them seek to involve us in their endeavors. We have size, scale, patience, and the UC ecosystem. We really are unique, and, as such, we are cultivating all of these assets to advance our position as a global investor.

These are but a few examples of the hard work we’ve been doing to position this organization for success. We are confident that, while the past 30 months have been challenging, 30 months from now we’ll be in a very strong position. It takes time to put these large organizations on a new path, but we’re very happy with our positioning today.

In closing, I want to reiterate this idea because it’s important: our job at UC Investments is to take the long-term view, learning from what’s happened in the past, setting realistic expectations, reporting with transparency and clarity, and responding with agility and intelligence. This is how we navigate the investing landscape of the future and serve the university in the best way possible, for the long term.

Jagdeep signature
Jagdeep Singh Bachher
Chief Investment Officer,
Office of the Chief Investment Officer of the Regents


*As of June 30, 2016, includes active, inactive, terminated, and retiree membership.

Statement from
Janet Napolitano
University of California
janet napolitano

As President of the University of California, I work with UC Investments to ensure that the University manages its current and future financial obligations prudently on behalf of our students, employees, and the State of California. While the 2015-16 fiscal year presented some challenges, it was also a year in which we made important strides toward existing and new goals.

We continued our work on various projects in areas of critical importance to the University, to California, and to the world. One such project is the UC Ventures Program, which enables the University to actively support innovation and entrepreneurship across the UC community through early-stage venture capital investment. The University’s Innovation and Entrepreneurship Initiative has been instrumental in moving UC’s cutting-edge discoveries into the world economy.

In last year’s annual report, we outlined the University’s first-ever sustainable investing framework. We have made significant progress in implementing this framework over the last year. At UC, we believe that environmental sustainability, social responsibility, and prudent governance factors inform our understanding of the current and future business environment, provide an important metric for evaluating risk and improving long-term returns, and help us become better stewards of our assets and the planet.

Like many other institutions, the University has also had to navigate the low-return environment that persists in the global economy. So far, we have managed this challenge with thoughtful investment decisions. In the coming year, we will also reassess our performance goals in light of this ongoing global trend. This collaborative re-evaluation process will involve a variety of stakeholders at UC. Our goal is to create a performance benchmark roadmap that will guide us through a challenging and uncertain period, and help us ensure continued growth and a bright future for UC.

Napolitano signature
Janet Napolitano
University of California
Q&A with
Richard Sherman
UC Board of Regents,
Chair of the Committee on Investments
paul Wachter

This was your inaugural year as Chair of the Committee on Investments. What were some of the highlights?

Probably the most important thing this year was continuing to right-size the UC Investments organization. I was as surprised as Jagdeep Singh Bachher at the number of managers we had. Active managers have, by and large, failed to meet or beat benchmarks, so couple that with what they’re being paid in a low-return environment and it’s clear it doesn’t make sense. I anticipate there will be an ongoing evolution to passively manage a sizable portion of the portfolio.

How will this shift benefit UC?

For too long, managers have been paid a lot of money in fees while not delivering performance. In the public sector, we’re accountable to our stakeholders and it’s very important that we’re transparent about our approach: we’re trying to get the healthiest returns at the best costs, and not pay people unless it’s earned. I don’t have a problem paying people performance fees as long as we’re getting performance, i.e. returns in excess of benchmarks.

So now we’re focusing with precision on those key external relationships to get the maximum benefit and working to shift our strategy to passively manage a more significant part of our portfolio.

How does the “flat is the new normal,” low-return environment affect UC?

The main effect is one of forcing us to get more realistic about our performance expectations. Here’s why: Most predictions of GDP growth are modest. Focusing on equities and fixed income and blending them, we cannot safely say that we’re going to have high single-digit returns going forward. So as it relates to our pension and endowment, we have to plan accordingly and reduce our expected rate of return.

It can be a painful conversation to have, but it could be even more painful in the future if we don’t recognize this issue now and adjust expectations. More than likely, we will need to reduce the rate of return in small steps, reevaluating along the way as needed.

Of course, we’re not the only ones grappling with this. It’s the new reality. And I’m sure Jagdeep could confirm that this is a conversation that’s happening at organizations and educational institutions around the country.

What was the response of the Regents when you presented this idea of reducing the expected rate of return?

There was a consensus that we have to be realistic about this right now. It affects the UC Pension most acutely because the Pension is a finite pot of money that has to be there to satisfy our liabilities. There’s no power to tax like the U.S. or state government has, so we have to deal with it.

The UC Ventures Program is thriving. How do you see this program evolving in the near future?

I am truly excited about the UC Ventures Program. We have such an incredibly successful and innovative environment here, and because we have a significant sum of money to invest, it makes perfect sense that we support the work that’s coming out of our own organization—of course, making sure our investments are appropriately sized given the risks involved.

I also love that with these innovations, particularly those in the medical field, we have the opportunity to generate returns for our stakeholders while also having a major positive impact on society.

What are your views on the importance of how environmental, social and governance (ESG) factors influence our overall investment strategy?

No one can invest today without taking ESG factors into account, and because we are stewards of the university’s money, we always have to ask the question: How do ESG factors affect each class? Further, since UC leads the world in mitigating the impacts of ESG factors such as climate change, it makes perfect sense that we should take those impacts into account when we evaluate our investments.

So what’s next for the Committee on Investments?

It is important for us to set realistic expectations. Pundits predicted that it would take a long time to come out of the last recession, the worst since the Great Depression. They were right. What will change that paradigm or when, I don’t know. All we can do is be prepared by resetting our expectations and reevaluating them every few years.

Finally, I look forward to continuing the open-door, open-phone, open-email policy Jagdeep and I have with each other. It’s a true partnership.

Our investment beliefs

Delivering value
through values.


Invest for the long term.

Where we can, we focus on investments over 10 years and beyond. This offers many more opportunities than those available to short- and intermediate-term investors. We aim to make the most of our scale and ability to be patient.


Invest in people.

The contributions of talented people are among the most important drivers of success for any investment organization. So we’ve made the recruitment and retention of exceptional staff a cornerstone of our strategy.


Build a high-performance culture.

Every organization needs a clearly defined culture to make sure everyone is working towards the same ends and speaking the same language. Our culture is one of responsibility, accountability and high performance. We are proud of our achievements but try to be humble, as markets sometimes surge and fall without warning.


We are all risk managers.

Our aim is simple: to earn the best risk-adjusted return that meets the objectives of our various portfolios. But achieving that aim is complex. An effective risk-management function is critical, enabling the leadership to delegate authority to the investment team. Everyone on the team is in the risk-management business.


Allocate wisely.

The key to investing, and the most important driver of performance, is asset allocation. To make effective investment decisions and achieve the appropriate combination of risk and return, we have to maintain a clear and balanced understanding of stakeholders’ unique objectives, time horizon, risk tolerances, liquidity and other constraints. As a globally significant investor, we also aim to make the most of our scale and patience when we allocate assets.


Costs matter.

High-quality advice comes at a cost. We get that. But we also believe fees and costs for external managers must be fully transparent and straightforward. Anything else creates potential problems — opaque fees can mask risk. Plus, cost savings can be considered a risk-free return. If we can save money through efficient, well-executed strategies, then we must. We intend to agressively capture every dollar of this risk-free return that we can.


Diversify with care. Act with clarity.

Diversification is invaluable, but it’s not a cure-all. It allows us to spread risk and reduce the impact of any individual loss. But diversifying too broadly has the effect of producing returns that are index like and can draw investors into assets and products they don’t fully understand. We prefer a more focused portfolio of assets and risks that we know extremely well. We also need to be keenly aware of our own strengths and weaknesses in the global context in order to act decisively when we believe markets are behaving irrationally or when we have a skill or knowledge advantage. That means keeping a constant, clear-eyed check on our evolving capabilities. It’s not always an easy or painless process, but it’s an essential one.


Sustainability impacts investing.

Sustainability is not a “check box,” but rather, a fundamental concern that we incorporate into decision making. We focus particularly on how sustainability can improve investment performance. Sustainable businesses are often more rooted in communities and resilient to future crises, which means investing in them makes good business sense. They are bound to affect portfolios in the future, and we need to consider them in our broader lens of investment decision making.





Collaborate widely.

We are proud to be a part of the University of California, as well as the broader community of institutional investors. Through active collaboration, we aim to leverage the unique resources of the university. We also want to foster collaborative relationships with our peers to leverage our long-term competitive advantages.


Innovation counts.

The best investors recognize that markets are constantly fluctuating and that no good idea lasts forever. We must always be innovating and identifying new opportunities. Getting in early brings rewards. Just as importantly, some of the best opportunities transcend asset-class silos. There are advantages in thinking differently and partnering with peers that are willing to work with us on innovative projects. Collaboration is one of the most powerful drivers of innovation.

Sustainable Investing

Investing in
a better world.

Climate change. Food insecurity. Water scarcity. Energy transitions. Our world is constantly changing, sometimes in dramatic ways. It is crucial we take these factors—and others—into account when we make investment decisions.

This was the second year we’ve worked under our sustainable investing framework, which was crafted to guide our philosophy of long-term investing in—and for—the future, and we made significant progress on its implementation.

After extensive reviews of risk factors both in the market and through an environmental sustainability, social responsibility and governance (ESG) lens, UC Investments sold holdings in various companies, concluding that the risks associated with investing in these types of companies outweigh any potential benefits to our portfolio.

As we look forward to our third year of working with our ESG framework, it’s clearer than ever that investing in businesses with principled ethics and sound environmental and social practices simply makes good business sense.

Sustainability impacts investing.

Climate change

Continued emissions of greenhouse gases will cause further warming and changes in the climate system.¹ A transition to a lower-carbon economy, including low-carbon sources of energy, is necessary to ensure the health and well-being of future generations. Given the scale of existing infrastructure and the challenge to quickly shift the transportation sector to low-carbon fuel sources, this transition requires a multi-generational effort.


Food and water security

Global climate change, population growth and rapid urbanization are intensifying the strain on global water and agricultural systems. Human well-being is inexorably linked to water and food security, and failure to adequately ensure these basic needs for future generations will undermine global economic welfare, human security and political stability.




Addressing inequality is both a responsibility and an opportunity.² Solving inequality of opportunity can create new demographics that can contribute to economic progress and widen the market for goods and services, creating a more profitable and sustainable business climate.


Aging population

Rapid aging of populations will be a transformational force affecting society and the global economy, requiring new approaches to health systems, workforce organization, intergenerational relations and public finance.



Diversity enhances economic, social and environmental outcomes for business and society.


Human rights

Businesses whose profits are derived from direct harm to public safety, theunlawful deprivation of human dignity or the exploitation of children or other vulnerable workers undermine universally approved principles of the United Nations and create a seriousthreat to the conditions needed for a well-functioning, market-based global system.


Circular economy

The “take, make, dispose” pattern of growth is an unsustainable economic paradigm. We must transition to a more circular economy in which intelligent design allows us to decouple economic growth and development from consumption of finite resources.


Ethics and governance

Our market economy system relies on trust as a fundamental cornerstone. Good corporate governance and proportionate, transparent and responsible regulation are vital to well-functioning and sustainable financial markets. As long-term investors, we seek the sustained returns associated with strong governance, rather than the rapid gains that can vanish quickly if they are rooted in corruption, fraud or falsification. Recent financial crises highlight how destructive such fraud and corruption can be to the proper functioning of credit markets and the preservation of personal and corporate wealth.

1. Intergovernmental Panel on Climate Change (IPCC), the leading informational body for the assessment of climate change. The IPCC was established in 1988 by the United Nations Environment Programme and the World Meteorological Organization (WMO) to provide a clear scientific view on the current state of knowledge on global climate change.

2. World Economic Forum (Davos)

Our Products

Here today,
here tomorrow.

For each product we manage, there is a shared foundational belief: Invest for the long term. A long-term approach has been particularly important this past fiscal year, one that was challenging for pensions and endowments generally. But we know that one-year return cycles are a small part of the overall story when managing long-term returns for the UC Endowment, UC Pension, UC Retirement Savings, and UC Working Capital.

Over the past 20 years, we’ve almost tripled our assets under management from $32.9 billion in 1996 to $97.6 billion as of June 30, 2016, and our ongoing commitment to simplifying our investment strategies and focusing on good governance has served us well. This year, we continued to fine tune management of each product in order to maximize long-term returns, focusing on four key areas of assessment:

  1. Analyzing each product’s risk and return objectives;
  2. Reevaluating asset and risk allocations;
  3. Shifting between active and passive investments as needed to add value above any prescribed benchmarks or reference points; and
  4. Working to aggressively reduce costs in our current low-return environment.

By continuing to refine our investment strategy for each product, we’re better positioned to capitalize on our distinct competitive advantages: our size, scale, ability to be patient, and the excellence of UC.


The UC

Our goal with the UC Endowment is to protect and maximize its value so we are able to support UC’s educational mission and provide critical operations and program funding to our campuses and affiliates.

As of this year, the total UC Endowment, which includes all 10 campus foundations, stands at $14.4 billion. This year, the UC Endowment paid out $263 million to 5,400 Endowments within the UC and its affiliates; over the last 10 years, we have paid out $2.4 billion.

At the end of fiscal year 2016 (June 30, 2016), the UC Endowment lost 3.4% or $304 million in market value. During the first quarter of fiscal year 2017 (ending September 30, 2016), we regained $300 million in the UC Endowment’s market value, giving the UC Endowment a return of +4.5% for Q1 2017. Because we always have our sights set on the long term, when looking, we see solid results: our annualized net return for the UC Endowment is 7.7% per year over 20 years and during that time, the UC Endowment grew from $2.9 billion to $9.1 billion, net of spending.

In the last two years, the UC Endowment has had significant inflows of $1.2 billion. One major inflow this year—$526 million—came from UC Los Angeles, which sold its royalty interest in Xtandi, a prostate cancer medication its researchers helped create.

In terms of the management of the UC Endowment, we continue to have a keen focus on investment costs. Specific to the UC Endowment, we have shrunk the number of stocks in the active equity portfolio from over 5,000 to 750; reduced the number of equity managers from 45 to 15.

By continuing to invest for the long term and taking a more pragmatic approach to spending and return expectations, we’ll be able to maintain and grow the UC Endowment for generations to come.



As stewards of the UC Pension, our core obligation is to provide sound management of the funds within the bounds of the Board of Regents’ funding policy.

As with our other products, we invest and manage the UC Pension for the long term. The UC Pension now serves more than 220,000 members, and over the past decade, it has gained $1.4 billion from the markets.

For fiscal year 2015-2016, the UC Pension lost $1.1 billion from the markets and active management, and we borrowed $600 million from UC Working Capital to bridge the funding gap. As of September 30, 2016, the UC Pension had recouped all of the previous year’s losses, gaining $2.0 billion and ending at $56.1 billion in assets under management, up +4.0% for Q1 2017. Looking at our long-term results, the UC Pension shows a 7.2% annualized net return for the past 20 years and it has grown from $23.6 billion to $54.1 billion during that time.

In our quest to further streamline our public equity portfolio, we reduced the number of stocks in the UC Pension from 5,700 to 3,500. We also continued to reduce the number of active public equity managers from 45 to 28, removing managers who were not meeting performance expectations. Our long-term strategy, based on the new asset allocation approved by the Board of Regents in May 2016, will be to decrease the weight of public equity and fixed income and increase the amount of private assets.

The UC Pension is a mature plan, and one that is changing: A decade ago, we had three active participants for each retiree; today we have only two. Given this shifting liability landscape and the low return market environment, it’s important to review our objectives and be realistic around future return expectations so we can prudently meet our obligations over the long term.

Retirement Savings

Design your

In addition to the UC Pension, we also manage $20.2 billion in the participant-directed UC Retirement Savings program for 300,000 UC faculty, staff and retirees—the second largest U.S. public plan of its type. Our goal is to make it easy for our stakeholders to plan and save for the future with a flexible, yet streamlined, set of investment choices.

Over the past 10 years, the UC Retirement Savings plan has almost doubled, including a $14.1 billion 403(b) plan (the largest in the United States); a $2.1 billion 457(b) plan; and a $4 billion defined contribution (DC) plan.

Our participants currently save about $1 billion a year, with the largest allocations invested in the following funds: Target Date ($5.5 billion), Savings ($4.2 billion), Global Equity ($4.1 billion), and Balanced Growth ($1.5 billion).

Over the past year, we have continued to reduce risk and improve outcomes for our participants. We’ve narrowed our investment fund choices to 16 from a high of 215 four years ago, and we’ve reduced costs by implementing institutional share class mutual funds. We’ve also changed the default fund choice from UC Savings to a Target Date Fund (TDF). We believe strongly in the importance of the TDF as the default investment option, offering dynamic asset allocation as a participant approaches retirement.

UC’s success depends on the talent of its faculty and staff, and we are committed to offering the most effective UC Retirement Savings program possible.

Working Capital


In the current market environment, good management of the UC Working Capital—the funds we use to pay for facilities upgrades, programs and services across our 10 campuses—is more important than ever.

Our $14.2 billion in UC Working Capital is invested in two investment portfolios: the Short Term Investment Pool (STIP) and the Total Return Investment Pool (TRIP). STIP is a highly liquid cash pool available to all university groups to fund daily operating cash flows. TRIP allows all campuses, as well as the Office of the President and our affiliates, to maximize return on their longer-term UC Working Capital, subject to acceptable risk.

As of June 30, 2016, 63% was managed for TRIP and 37% for STIP. Our goal is to balance the mix of the two to maximize the risk-adjusted returns within the constraints of rating agency liquidity guidelines.

During fiscal year 2015-2016, UC Working Capital earned $200 million in market gains and the TRIP paid out $400 million to UC campuses during the fiscal year. Since its inception in 2008, TRIP has shown a 7.0% annualized net return and has increased its assets from $1.5 billion to $8.9 billion during that time.

We also reduced risk in TRIP from 60% in equities to 35%. By being less exposed to a declining equity market during the year, we saved about $350 million. We also further de-risked within the equity portfolio by transitioning from 17 active managers to 6 as we continue on our path of a fully passive implementation of the public equity portfolio for TRIP.

Every $1 billion we invest into TRIP can earn about $30 million more in income on average than being in STIP over the long term. To take advantage of this, last year we moved $1.4 billion from STIP to TRIP as part of our continuing focus on investing for the long term.

UC Ventures Program

Investing in the
next big thing: UC.

The University of California is one of the world’s richest academic and entrepreneurial environments. Our researchers produce on average five inventions a day, and for the past few decades, UC has been granted more patents each year than any other university in the world. In fact, since 1980, more than 800 start-up companies have been founded with UC patents at their core. According to the 2016-2017 PitchBook Universities Report, five UC campuses rank among the top 50 university undergraduate programs for VC-backed entrepreneurs, with UC Berkeley ranking second.

Impressed by the richness of opportunities at UC, UC Investments developed the UC Ventures Program to invest in UC-based innovation across a wide variety of disciplines, including life sciences, technology, energy, agriculture, materials, and more, by investing in funds.

The UC Ventures Program invests via a two-pronged approach, providing capital to both strategic funds that target the broader UC ecosystem as well as to local funds that focus on a specific campus. This year, on the strategic-fund level, UC Investments committed funds to Bow Capital, led by Silicon Valley entrepreneur Vivek Ranadivé, a pioneer in big data and real-time technology; we also re-invested in the Column Group, a fund that focuses on biotech opportunities. On the local-fund level, UC Investments committed capital to The House Fund and Vertical Venture Partners. The House Fund, led by Jeremy Fiance, targets seed-stage opportunities at UC Berkeley; Vertical Venture Partners focuses on early-stage opportunities at UC San Diego.

Through the UC Ventures Program, we will leverage our network to advance innovation and entrepreneurship across the UC ecosystem, while also generating attractive returns for our stakeholders.


Looking forward,

Looking at our results from the past fiscal year, it’s clear that volatile markets had an impact. But our quick rebound during the months after the fiscal year ended reinforced our belief that the only sure direction forward is to stay focused on the long term.

We’re staying true to our investment beliefs and pillars—less is more, risk rules, costs matter, centennial performance—while continually fine tuning our investment strategies to meet the demands of an uncertain market. And in the coming year, we’ll be working with the University to reevaluate our performance goals to reflect a more realistic approach and continue on the path of financial prudence.

Long-term results. Realistic expectations. Creativity and discipline. This is how we can provide the best possible performance for UC.

Regents and Officers
(In alphabetical order of last name)

Appointed Regents

Richard C. Blum

William De La Pena

Gareth Elliot

Russell S. Gould

Eddie R. Island

George D. Kieffer

Sherry L. Lansing

Monica Lozano

Hadi Makarechian

Eloy Ortiz Oakley

Abraham Oved

Norman J. Pattiz

John A. Pérez

Bonnie M. Reiss

Richard Sherman

Bruce D. Varner

Charlene R. Zettel

Ex Officio Regents

Anthony Rendon

Speaker of the Assembly

Jerry Brown

Governor of California

Rodney Davis

Vice President, Alumni Associations
of the University of California

Yolanda Gorman

President, Alumni Associations of the
University of California

Janet Napolitano

President of the University of California

Gavin Newsom

Lieutenant Governor of California

Tom Torlakson

State Superintendent of Public Instruction

Office of the President

Jagdeep Singh Bachher

Chief Investment Officer and Vice
President, Investments

Nathan Brostrom

Executive Vice President, Chief Financial

Kimberly Budil

Vice President, Office of the National

Aimée Dorr

Provost and Executive Vice President,
Academic Affairs

Julie Henderson

Senior Vice President, Public Affairs

Glenda Humiston

Vice President of Agriculture and
Natural Resources

Janet Napolitano

President of the University of California

Rachael Nava

Executive Vice President, Chief
Operating Officer

Nelson Peacock

Senior Vice President, Government Relations

Charles F. Robinson

General Counsel and Vice President,
Office of General Counsel

John D. “Jack” Stobo

Executive Vice President, UC Health

Christine Gulbranson

Senior Vice President, Research
Innovation & Entrepreneurship

Sheryl Vacca

Senior Vice President, Chief Compliance
and Audit Officer

Regents Designate

Harvey Brody

Treasurer, Alumni Associations of the
University of California

Marcela Ramirez

Student Regent Designate

Cynthia Schroeder

Secretary, Alumni Associations of the
University of California

Officers of the Regents

Jagdeep Singh Bachher

Chief Investment Officer
and Vice President, Investments

Charles F. Robinson

General Counsel and Vice President,
Legal Affairs

Anne L. Shaw

Secretary and Chief of Staff to the Regents

Sheryl Vacca

Senior Vice President, Chief Compliance
and Audit Officer

Faculty Representatives (Non-voting)

Jim Chalfant

Vice Chair, Assembly of the Academic

Daniel Hare

Chair, Assembly of the Academic Senate


Gene D. Block Los Angeles

George R. Blumenthal Santa Cruz

Nicholas B. Dirks Berkeley

Howard Gillman Irvine

Sam Hawgood San Francisco

Ralph Hexter (Interim Chancellor) Davis

Pradeep K. Khosla San Diego

Dorothy Leland Merced

Henry T. Y. Yang Santa Barbara

Kim Wilcox Riverside

Directors of DOE Laboratory

Michael Witherell

Director, Lawrence Berkeley National

Committee on
(In alphabetical order of last name)

Committee on Investments,

William De La Pena

Yolanda Gorman

George D. Kieffer

Hadi Makarechian

Abraham Ovid

Norman J. Pattiz

John A. Pérez (Vice Chair)

Richard Sherman (Chair)

Charlene R. Zettel

Ex Officio Members

Jerry Brown

Monica C. Lozano

Janet Napolitano

Bruce D. Varner

Advisory Members

Daniel Hare

Staff Advisors

Deidre Acker

LaWana Richmond

Investment Advisory Group

David Crane

Gary Rogers

Bob Samuels


Steve Klosterman

Bruce Lehmann