University Endowment and Pension Perform Well with 13% and 12.7% Returns

The University of California's Investments Committee recently reported impressive financial returns, highlighting a successful year for both the university's endowment and pension funds. The endowment achieved a remarkable 13% return, while the pension fund saw a solid 12.7% increase. These results come as a surprise to many, given the economic challenges faced over the past year.

A standout feature of the meeting was the performance of the university's "blue and gold pool," which has now grown to $7 billion. This investment strategy has consistently outperformed others in the country, reinforcing the idea that a straightforward approach to investing—focusing on a simple mix of stocks and bonds—can yield better results than more complex strategies that often come with high fees.

The committee emphasized the importance of maintaining healthy long-term returns, with the pension fund averaging 8.1% and the endowment at 8.9% over the past 30 years. These figures align well with the university's goals of achieving 6.75% for pensions and over 8% for endowments.

As the committee prepares to share these results publicly, the focus remains on the positive impact these financial successes will have on the university community. The strong performance not only supports the university's financial health but also enhances its ability to invest in programs and services that benefit students and faculty alike. The meeting concluded with a reminder of the value of simplicity in investment strategies, a lesson that resonates beyond the financial realm and into the broader goals of the university.