Bruins To Look Outside for Equity Expertise

November 27, 2002 ( - The University of California has decided to go outside for management of the $14 billion US equity portfolio of its pension and endowment portfolios.

The university’s Regents, who administer $47.4 billion in retirement and endowment funds, voted at a closed meeting on November 13 to make the change because its internally managed US equity portfolio underperformed its benchmark by 1.3% over the last decade, according to Reuters.   The portfolio’s benchmark is the S&P 500 and the Russell 3000 Tobacco-free index.

Post Notes

The decision, which will result in the loss of 9 of the 54 positions at the school’s internal investment management unit, followed an 18-month review by the university’s treasurer, David Russ.

The university will temporarily move the $13.8 billion into the Russell 3000 Tobacco-free Index Fund managed by State Street Global Advisors, until external managers can be hired to diversify the holdings.  

The $13.8 billion is made up of $11.4 billion of the university’s $31 billion in retirement money, $1.4 billion of the $3.8 billion endowment, and a number of smaller funds.