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August_ 2009 To Russell S Gould_ Chair of The Regents of the

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August_ 2009 To Russell S Gould_ Chair of The Regents of the Powered By Docstoc
					August, 2009


To:                Russell S. Gould, Chair of The Regents of the University of California
                   Paul D. Wachter, Chair of The Regents Committee on Investments
                   George M. Marcus, Vice Chair of The Regents Committee on Investments

cc:                Members of The Regents’ Committee on Investments
                   Chairs of the UC Campus Foundations’ Investment Committees
                   Members of The Regents’ Investment Advisory Group
                   Marie N. Berggren, UC Chief Investment Officer and Acting Treasurer
                   Melvin L. Stanton, UC Associate Chief Investment Officer
                   Steven Medvecki, State Street Bank – Investment Analytics

From:               Terry A. Dennison, Ursula Niederberger, Mercer Investment Consulting:
                       The Regents’ General Investment Consultant


Subject:            The University of California Foundations Investment Performance
                    and Asset Allocation Report for Periods Ending March 31, 2009



Attached is the Investment Performance and Asset Allocation Report of the University of California
Campus Foundations for periods ending March 31, 2009. This report is based on the investment
information provided by State Street and reflects the reconciled and signed-off results of each
Foundation.

As addressed in the previous reports with the investment policy change for the Campus Foundations, the
Regents’ general investment consultant took on a broader role in reviewing the quarterly performance, as
well as each Foundation’s investment policy and the investment process. The implementation of the new
process and the reconciliation with State Street was time intensive. Starting with the second quarter 2009,
we are planning to release our report within 12 weeks after quarter-end.

Following is a synopsis of key information provided in the report.




Services provided by Mercer Investment Consulting, Inc.
Page 2



Investment Performance – Summary

We found that the performance of the individual Campus Foundations is generally consistent with their
actual asset allocations. However, in light of the considerable weakness of the global economy and the
persistent financial crisis, the return dispersion within the Foundations’ portfolios and benchmarks
widened, with the greatest deviation found in Foundations invested outside the GEP.

The ranges of the Campus Foundations’ total return investment performance and their individual policy
benchmarks for periods ending March 31, 2009 are shown in the following graph:

                                   Distribution of Portfolio Returns as of March 31, 2009
    5.0%


    0.0%


  - 5.0%



 - 10.0%


  - 15.0%


  - 20.0%



  - 25.0%



  - 30.0%


  - 35.0%

               1 Quarter          2 Quarters              1 Year               2 Year            3 Years             5 Years            10 Years
           Portfolio Bench     Portfolio Bench      Portfolio Bench      Portfolio Bench    Portfolio Bench     Portfolio Bench     Portfolio Bench
GEP          -5.60%   -5.03%    -18.40%   -14.67%    -25.76%   -21.48%    -11.98% -9.25%      -4.47%   -2.58%      1.57%    2.40%     2.89%   2.68%
Maximum      -3.79%   -5.03%    -14.25%   -14.67%    -24.42%   -21.48%     -9.46% -9.25%      -2.73%   -2.58%      4.32%    2.58%     4.78%   2.68%
25th P       -4.74%   -5.12%    -17.96%   -15.29%    -25.53%   -22.21%     -9.88% -9.88%      -4.37%   -2.99%      2.33%    2.40%     3.64%   2.58%
Median       -5.49%   -6.20%    -19.03%   -18.32%    -26.68%   -25.24%    -12.47% -12.47%     -4.97%   -5.03%      2.03%    1.34%     2.77%   1.76%
75th P       -5.85%   -7.31%    -20.05%   -20.80%    -27.62%   -29.51%    -15.46% -15.46%     -6.14%   -6.96%      0.79%    0.81%     2.28%   1.46%
Minimum      -7.23%   -9.37%    -21.36%   -24.91%    -32.05%   -31.28%    -17.12% -17.12%     -9.14%   -8.29%     -0.84%   -1.06%     0.85%   0.39%




With the persistent financial market crisis, the Foundations continued to experience negative returns. The
1st quarter resulted in negative absolute performance returns, which ranged from -3.79% to -7.23%.
However, we find that the distribution among the constituents’ returns narrows and that they generally
outperform the benchmark on an aggregated basis. This is reflected also in the next graph. Five of the 10
Foundations exhibited positive excess return relative to their respective policy benchmarks. San Diego
represents the only outlier and trailed the benchmark by 182 basis points for the quarter. Their real estate
portfolio encountered another significant quarter loss. Riverside, San Francisco and Santa Barbara
outperformed their benchmarks in the range of 3% – 4.5%. Riverside and San Francisco still held on to
their risk hedge strategy. Whereas San Francisco preserved a cash allocation of 10%, Riverside
increased the cash allocation from 30% to 43% of the total assets.
Page 3



The graph below presents the performance details for the 1st quarter 2009:
                                       Total Performance Quarter Ending March 31, 2009
 5.00%




 3.00%




 1.00%




-1.00%




-3.00%




-5.00%




-7.00%
                Portfolio
                Variance from Benchmark
-9.00%
          Berkeley          Davis      Irvine     UCLA      Merced      Riverside San Diego      San       Santa     Santa        GEP
                                                                                              Francisco   Barbara    Cruz



The following graph shows the excess return over a 1-year rolling period, which reflects the observed
performance trend of the Foundations. Since the beginning of the market turmoil in August 2007, a wider
divergence of the excess return can be observed. The range was led by UC Riverside on the positive side
and UC Santa Barbara on the negative side.


                     Excess Return 1 Year Rolling Period Portfolio versus Individual Benchmark
                                            March 2005 to March 2009
 10.0%


  8.0%


  6.0%


  4.0%


  2.0%


  0.0%


 -2.0%

                            UC Berkeley
 -4.0%                      UC Davis invested in GEP/STIP
                            UC Irvine
                            UC LA
 -6.0%                      UC Merced invested in GEP
                            UC Riverside
                            UC San Diego
                            UC San Francisco
 -8.0%                      UC Santa Barbara
                            UC Santa Cruz invested in GEP/STIP
                            GEP
-10.0%
         Mar       Jun      Sep     Dec    Mar     Jun   Sep     Dec    Mar     Jun   Sep     Dec    Mar     Jun    Sep    Dec    Mar
         2005     2005      2005    2005   2006   2006   2006    2006   2007   2007   2007    2007   2008   2008    2008   2008   2009
         Page 4




         In the next step, we analyzed the risk level that the Foundations have taken on to achieve their returns.
         The graphs below are snapshots of each Foundation’s risk and return profile for 3 and 5 years:

                                         Portfolio Return and Risk for 3 Years Ending March 2009                                                           Portfolio Return and Risk for 5 Years Ending March 2009
         10.0%                                                                                                                          10.0%


          8.0%                                                                                                                           8.0%


          6.0%                                                                                                                           6.0%


          4.0%                                                                                                                           4.0%
                                                                                                                                                                                           UCR
                                                                                                                                                                       UCD
                                                                                                                                                                             UCM    UCB
          2.0%                                                                                                                           2.0%                                    UCLA
                                                                                                                                                                        UCSC
Return




                                                                                                                                                                           UCSDGEP




                                                                                                                               Return
          0.0%                                                                                                                           0.0%                                UCI              UCSF
                                                                                                                                                                                                            UCSB
          -2.0%                                                                                                                          -2.0%
                                                                                           UCR
                                                                    UCD        GEP
          -4.0%                                                                         UCB                                              -4.0%
                                                                 UCSC
                                                                         UCM
          -6.0%                                                                         UCLA
                                                                                                                                         -6.0%
                                                                                 UCSD
                                                                               UCI            UCSF
          -8.0%                                                                                                                          -8.0%
                                                                                                                        UCSB
         -10.0%                                                                                                                         -10.0%
              5.5%                6.5%        7.5%     8.5%      9.5%          10.5%     11.5%       12.5%      13.5%     14.5%              5.5%   6.5%        7.5%     8.5%       9.5%          10.5%     11.5%   12.5%   13.5%   14.5%
                                                                        Risk                                                                                                               Risk




         The challenging market environment results in a north-side to south-side shift of the risk return profile.
         This implies that the Foundations had realized lower returns with a modest increase of risk during the
         more recent periods. As with the previous quarters, we can identify three outliers: UC San Francisco, UC
         Santa Barbara, and UC Riverside which took on higher risk. UC Riverside outperformed whereas Santa
         Barbara underperformed significantly against the median.

         In addition, we evaluated the active risk of the portfolios, which measures how closely the portfolio follows
         a specified benchmark:

                                                           Annualized Tracking Error and Excess Return
                                               Portfolio versus Individual Benchmark for 3 Years Ending March 2009
                              5.0%
                                                                                                                                                                                       UCR
                              4.0%


                              3.0%


                              2.0%


                              1.0%                                                                                                               UCSF
              Excess Return




                              0.0%
                                                                  UCLA
                                                                                                                                UCB
                              -1.0%
                                                                                UCD        UCI UCSD
                                                                                        UCM                                               UCSB
                              -2.0%
                                                                        UCSC           GEP
                              -3.0%


                              -4.0%


                              -5.0%
                                   0.0%                 1.0%                    2.0%                  3.0%                     4.0%                     5.0%                 6.0%                    7.0%
                                                                                                             Tracking Error
Page 5



The graph reflects the tracking error and excess return of the individual portfolios when compared to their
respective benchmarks over 3 years. We found for Riverside an excess return of 4.7%, which is the result
of their tactical cash allocation of 43%. However, Riverside’s tracking error increased significantly – from
3.8% to 6.2% over the last few quarters. For UC Santa Barbara, UC Berkeley, and UC San Francisco, we
observed a deviation of about 4% from their benchmark. Whereas San Francisco archived an excess return
of 1.3% due to 10% tactical cash allocation, Berkeley underperformed its benchmark with 0.5% because of
their underperforming hedge funds and their commodity asset class. Irvine and San Diego took on a slightly
higher risk and achieved higher returns than the average of the Foundations that are invested in the GEP.

With respect to the performance impact of alternative investments, we like to emphasize that Berkeley, San
Francisco, and UCLA implement an interim benchmark to reflect their ongoing funding of their alternative
asset class. Santa Barbara, which started in October 2007 to invest in alternative investments, has not
developed an interim benchmark. Instead, its results are measured against its long-term target benchmark,
which results in a higher tracking error.



Policy Compliance

UC Davis, UC Merced, and UC Santa Cruz are invested 100% in GEP and STIP. The other seven
Foundations implemented their own individual investment policies. The overview of the asset allocation as
of March 31, 2009 versus the individual long-term benchmark is presented below.

                                                             Actual Asset Allocation versus Long-Term Benchmark
                                                                             As of March 31, 2009
   100%

    90%

    80%

    70%

    60%

    50%

    40%

    30%

                                                                                                                                                                                                                                                                       Liquidity
    20%
                                                                                                                                                                                                                                                                       Public Fixed Income
    10%                                                                                                                                                                                                                                                                Alternative Investments
                                                                                                                                                                                                                                                                       Public Equity
     0%
                                                                                                                                    Merced Actual

                                                                                                                                                    Merced Bench

                                                                                                                                                                   Riverside Actual




                                                                                                                                                                                                                                                                                                                                       Santa Cruz Actual
                                             Davis Actual




                                                                                                                                                                                      Riverside Bench
                                                            Davis Bench

                                                                          Irvine Actual
                            Berkeley Bench




                                                                                          Irvine Bench




                                                                                                                       UCLA Bench




                                                                                                                                                                                                                                                                    San Francisco Bench
                                                                                                                                                                                                                                             San Francisco Actual




                                                                                                                                                                                                                                                                                                                 Santa Barbara Bench
          Berkeley Actual




                                                                                                         UCLA Actual




                                                                                                                                                                                                                                                                                          Santa Barbara Actual
                                                                                                                                                                                                        San Diego Actual

                                                                                                                                                                                                                           San Diego Bench




                                                                                                                                                                                                                                                                                                                                                           Santa Cruz Bench




In addition to their long-term benchmarks, UC Berkeley, UCLA, and UC San Francisco have implemented
interim benchmarks to reflect their ongoing funding of their alternative asset classes. These interim
benchmarks are dynamically adjusted and will be reviewed periodically as the asset allocation fundings
move closer to their long-term policy targets.

The following table reflects the difference between the asset allocation as of March 2009 and the long- term
allocation defined in the investment policy statement for each Foundation. Any exposure outside the
individual policy ranges is shaded, and the heat map on the right side shows by how much.
Page 6



Over-/Underweight to Individual Foundation Policy as of March 31, 2009
                  Public   Alternative   Public                      Total   % Outside of the
                  Equity  Investments Fixed Income     Liquidity    Assets   Individual Policy Range
Berkeley            -7.4%         -6.5%         4.7%         9.2%   #REF!               > 5%
Davis               -4.4%          4.4%        -0.2%         0.2%   #REF!               + 4% to + 5%
Irvine              -3.4%         -1.8%         3.3%         1.9%   #REF!               + 3% to +4%
UCLA                -1.1%          0.9%         0.5%        -0.3%   #REF!               + 2% to + 3%
Merced              -4.3%          4.4%        -0.2%         0.1%   #REF!               + 1% to + 2%
Riverside          -36.5%         10.4%       -23.1%        49.3%   #REF!               Within policy ranges
San Diego           -3.3%          0.3%         1.4%         1.6%   #REF!               - 1% to -2%
San Francisco      -12.9%         -8.5%        11.1%        10.3%   #REF!               - 2% to -3%
Santa Barbara       -0.9%        -17.4%         9.4%         8.9%   #REF!               - 3% to -4%
Santa Cruz          -5.3%          3.4%        -0.7%         2.6%   #REF!               - 4% to -5%
                                                                                        < 5%

We found that the UC Berkeley and UC San Diego allocations are slightly outside their policy ranges but do
not represent an issue of concern in a bear market. Generally, the policy ranges are broadly defined, and
therefore most of the portfolios are within guidelines. However, it should be noted that UC Berkeley, UC
Riverside, UC San Francisco and UC Santa Barbara deviated considerably from their target benchmarks
due to the implementation of a risk hedge strategy. US Riverside revised its policy as of December 1, 2008
to include broader ranges, and Santa Barbara adopted a new investment policy in October 2007. UC Santa
Barbara is in the process of funding alternative investments.




Analysis and Recommendations

Mercer Investment Consulting, Inc. (MIC) as the General Investment Consultant to The Regents of the
University of California has been directed by the Committee on Investments to review the Campus
Foundations’ investment policies to ensure that they are consistent with industry best practices.

Based on our review of the UC Campus Foundations’ investment policies, MIC has no issues of concern
to address as of March 2009.

MIC is aware of and fully supports recent progress in revising the existing Regents’ asset allocation policy
guidelines in a manner that will satisfy the Regents’ fiduciary responsibilities and allow the Campus
Foundations to manage their assets in a manner consistent with industry best practices.
                                          University of California, Berkeley Foundation Portfolio
                                                               March 31, 2009

                                                                                                                                 Annualized
                                                                                                      Total Return
                                                                                                                                 Total Return
                                                                 Market Value           Recent           Six         One            Two
                                                                                        Quarter         Month        Year           Year
     UCB Foundation Aggregate                                  $656,225,978     100%         -4.54%       -19.65%     -27.03%         -12.42%
      Policy Benchmark                                                                      -6.19%       -17.15%     -24.39%         -11.76%
      Variance to Policy Benchmark                                                         +1.65%          -2.50%      -2.64%          -0.66%
     U.S. Equity                                                 $96,031,786    15%          -8.72%       -29.38%     -35.45%         -23.66%
      RUSSELL 3000                                                                        -10.80%        -31.12%     -38.20%         -23.81%
      Variance to Benchmark                                                                +2.08%         +1.74%      +2.75%          +0.15%
     Non-U.S./Global Equity-Dev. Mkt.                            $85,199,787    13%        -10.40%        -31.94%     -46.49%         -24.28%
      MSCI EAFE (GROSS)                                                                   -13.85%        -30.99%     -46.20%         -27.49%
      Variance to Benchmark                                                                +3.45%          -0.95%      -0.29%         +3.21%
     Emerging Market Equity                                      $32,535,188      5%          1.85%       -30.42%     -50.00%         -21.79%
      MSCI EMERGING MARKETS (NET)                                                            0.95%       -26.91%     -47.07%         -19.86%
      Variance to Benchmark                                                                +0.90%          -3.51%      -2.93%          -1.93%

     Core Fixed Income                                           $86,327,459    13%         -1.16%        6.66%       6.16%           9.20%
       LB AGGREGATE                                                                         0.12%         4.70%       3.13%           5.37%
       Variance to Benchmark                                                               -1.28%        +1.96%      +3.03%          +3.83%
     TIPS                                                                NA
     High Yield Debt                                                     NA
     Non-U.S./Global Fixed - Dev. Mkt.                           $23,194,966      4%       -4.22%             NA            NA             NA
       CITIGROUP WGBI                                                                     -4.81%
       Variance to Benchmark                                                              +0.59%
     Emerging Market Debt                                                 NA

     Private Equity                                              $77,601,751    12%         -6.34%        -12.27%      -9.98%           -1.53%
       CAMBRIDGE VENTURE CAPITAL INDEX                                                    -12.53%        -15.02%      -16.17%          -1.28%
       Variance to Benchmark                                                               +6.19%         +2.75%      +6.19%           -0.25%
     Abs. Ret./Mktable Alts./Hedge Fds.                        $137,263,857     21%          0.33%        -14.04%     -15.74%           -5.63%
       91 DAY TBILL+400BPS                                                                  1.03%           2.25%       5.24%           7.01%
       Variance to Benchmark                                                               -0.70%        -16.29%     -20.98%         -12.64%
     Marketable Energy/Comm/Nat Res                             $26,178,421       4%        -2.25%        -34.18%     -46.88%         -17.85%
       CUSTOM BLENDED BENCHMARK                                                            -6.72%        -27.16%      -35.15%        -12.42%
       Variance to Benchmark                                                               +4.47%          -7.02%    -11.73%           -5.43%
     Private Energy/Comm/Nat Res                                  $9,360,078      1%        -0.15%          -0.62%     13.65%            5.36%
       NA
       Variance to Benchmark
     Marketable Real Estate                                     $14,956,634       2%       -23.75%        -53.53%    -57.32%          -41.62%
       CUSTOM BLENDED RE BENCHMARK                                                        -27.67%        -54.21%     -58.00%         -41.61%
       Variance to Benchmark                                                               +3.92%         +0.68%     +0.68%            -0.01%
     Private Real Estate                                          $7,062,996      1%         0.00%         -8.92%     -8.80%            -6.38%
       NA
       Variance to Benchmark
     Liquidity Accounts                                         $60,513,055      9%        0.23%          0.85%       2.80%           3.85%
       91 DAY T-BILL                                                                       0.05%          0.27%       1.21%           2.90%
       Variance to Benchmark                                                              +0.18%         +0.58%      +1.59%          +0.95%
     UC Regents Mgd Funds
      Regents STIP 1)                                           $60,325,172       9%        0.23%          0.85%       2.80%           3.83%
Notes: Returns are net of all fees. Cambridge Venture Capital Index returns are as of 12/31/08. Market values of private equity and
marketable alternatives are lagged.
1)
     The 'Liquidity Accounts' performance and market value includes both STIP and other liquid accounts.
     STIP is also broken out separately to reflect those funds managed by the UC Regents.
                                University of California, Berkeley Foundation Portfolio
                                                    Asset Allocation
                                                     March 31, 2009


                                                                Variance                                    Policy Range
                                                Benchmark         from                                      Compliance
                         Assets      Actual       Policy       Benchmark                                       (Actual
                          ($M)     Allocation   Allocation       Policy             Policy Range             Allocation)
Public Equity             $214        33%          40%             -7%            35%         55%               -2.4%
Public Fixed Income       $110        17%          12%             5%             10%         20%                Yes
All Alternative Inv.      $272        42%          48%             -6%            30%         50%                Yes
Liquidity Portfolio        $61         9%           0%             9%              0%         10%                Yes
Total Assets              $656       100%         100%

The calculation of the UC Berkeley Foundation Policy Benchmark reflects a set of interim weights which deviate from their
long-term target weights. The asset class weights of the interim benchmark are as follows: 39.7% Public Equities, 15%
Public Fixed Income and 45.3% Alternative Investments.
                                      University of California, Davis Foundation Portfolio
                                                         March 31, 2009

                                                                                                                      Annualized
                                                                                             Total Return
                                                                                                                      Total Return
                                                            Market Value           Recent        Six        One          Two
                                                                                   Quarter      Month       Year         Year
 UCD Foundation Aggregate                                  $121,234,516    100%       -5.38%    -18.14%     -25.46%       -11.80%
  Policy Benchmark                                                                    -5.03%    -14.67%     -21.48%        -9.25%
  Variance to Policy Benchmark                                                        -0.35%     -3.47%      -3.98%        -2.55%
 U.S. Equity                                                         NA
  Benchmark
  Variance to Benchmark
 Non-U.S./Global Equity-Dev. Mkt.                                    NA
  Benchmark
  Variance to Benchmark
 Emerging Market Equity                                              NA
  Benchmark
  Variance to Benchmark

 Core Fixed Income                                                   NA
   Benchmark
   Variance to Benchmark
 TIPS                                                                NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                     NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                   NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                      NA
   Benchmark
   Variance to Benchmark
 Abs. Ret./Mktable Alts./Hedge Fds.                                  NA
   Benchmark
   Variance to Benchmark
 Commodities/Natural Res./Energy                                     NA
   Benchmark
   Variance to Benchmark
 Real Estate                                                         NA
   Benchmark
   Variance to Benchmark
 Liquidity Accounts                                                 NA
   Benchmark
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents GEP                                            $121,134,714     100%       -5.60%     -18.40%    -25.76%       -11.98%
   Regents STIP                                                $99,802       0%        0.80%       1.83%      3.79%         4.33%
Returns are net of all fees.
                                 University of California, Davis Foundation Portfolio
                                                  Asset Allocation
                                                    March 31, 2009


                                                              Variance                          Policy Range
                                                Benchmark       from                            Compliance
                        Assets       Actual       Policy     Benchmark                             (Actual
                         ($M)      Allocation   Allocation     Policy           Policy Range     Allocation)
Public Equity             $48         40%          44%           -4%          37%         51%        Yes
Public Fixed Income       $25         20%          21%            0%          15%         25%        Yes
All Alternative Inv.      $48         40%          36%            4%          30%         40%        Yes
Liquidity Portfolio       $0           0%           0%            0%          0%          10%        Yes
Total Assets             $121        100%         100%

The UC Davis Foundation utilizes the GEP Policy Benchmark.
                                         University of California, Irvine Foundation Portfolio
                                                            March 31, 2009

                                                                                                                              Annualized
                                                                                                    Total Return
                                                                                                                              Total Return
                                                               Market Value           Recent            Six        One           Two
                                                                                      Quarter          Month       Year          Year
 UCI Foundation Aggregate                                    $144,765,171     100%         -5.92%        -20.12%    -27.63%        -14.22%
  Policy Benchmark                                                                        -6.75%        -18.20%    -24.89%        -13.62%
  Variance to Policy Benchmark                                                           +0.83%           -1.92%     -2.74%         -0.60%
 U.S. Equity                                                  $27,092,878     19%          -9.40%        -29.95%    -37.33%        -23.13%
  RUSSELL 3000                                                                          -10.80%         -31.12%    -38.20%        -23.81%
  Variance to Benchmark                                                                  +1.40%          +1.17%     +0.87%         +0.68%
 Non-U.S./Global Equity-Dev. Mkt.                             $15,386,974     11%        -13.16%         -30.83%    -44.03%        -27.33%
  MSCI EAFE - NET                                                                       -13.94%         -31.11%    -46.51%        -27.85%
  Variance to Benchmark                                                                  +0.78%          +0.28%     +2.48%         +0.52%
 Emerging Market Equity                                                NA
  Benchmark
  Variance to Benchmark

 Core Fixed Income                                            $17,732,222     12%         -0.30%          4.64%      -0.79%        7.05%
   LB AGGREGATE                                                                           0.12%           4.70%      3.13%         5.37%
   Variance to Benchmark                                                                 -0.42%          -0.06%     -3.92%        +1.68%
 TIPS                                                                  NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                 $411,704      0%         0.38%          -12.74%   -22.05%         -11.85%
   ML HIGH YLD US CORP, CASH PAY                                                          5.26%         -13.13%    -19.95%        -12.09%
   Variance to Benchmark                                                                 -4.88%          +0.39%     -2.10%         +0.24%
 Non-U.S./Global Fixed - Dev. Mkt.                                     NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                  NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                $8,662,064      6%       -10.91%          -15.87%    -18.43%        -7.01%
   RUSSELL 3000 INDEX PLUS 300BPS                                                        -9.75%         -28.36%     -34.76%      -20.55%
   Variance to Benchmark                                                                 -1.16%         +12.49%    +16.33%       +13.54%
 Abs. Ret./Mktable Alts./Hedge Fds.                            $8,698,840      6%       -11.44%          -27.56%    -34.80%       -17.13%
   3-MONTH T-Bill + 4%                                                                    1.03%            2.25%      5.26%         7.02%
   Variance to Benchmark                                                               -12.47%          -29.81%    -40.06%       -24.15%
 Commodities/Natural Res./Energy                               $5,674,491      4%        29.75%          -10.31%         NA            NA
   DOW JONES AIG COMMODITIES INDEX                                                       -6.31%         -34.46%
   Variance to Benchmark                                                               +36.06%          +24.15%
 Real Estate                                                   $5,764,660      4%         -2.15%         -21.09%   -18.71%          -3.01%
   NCREIF PROPERTY INDEX                                                                 -7.33%         -15.01%    -14.68%         -1.56%
   Variance to Benchmark                                                                +5.18%            -6.08%    -4.03%         -1.45%
 Liquidity Accounts                                                    NA
   Benchmark
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents GEP                                                $41,069,544     28%        -5.60%          -18.40%   -25.76%        -11.98%
   Regents STIP                                                $2,737,633      2%         0.80%            1.83%     3.79%          4.33%
   Regents Absolute Return                                     $9,109,819      6%         1.46%          -15.00%   -16.41%             NA
   Regents Vintage Real Estate                                  $489,455       0%       -42.29%               NA        NA             NA
   Regents Vintage Private Equity                              $1,934,888      1%       -13.80%          -17.48%   -25.09%         -2.66%

Notes: Returns are net of all fees. Prior to July 1, 2007 Core Fixed Income included Commonfund Multi-Strategy and Absolute Return.
                                University of California, Irvine Foundation Portfolio
                                                 Asset Allocation
                                                   March 31, 2009


                                                              Variance                          Policy Range
                                              Benchmark         from                            Compliance
                       Assets      Actual       Policy       Benchmark                             (Actual
                        ($M)     Allocation   Allocation       Policy           Policy Range     Allocation)
Public Equity            $59        41%          44%             -3%          34%         54%        Yes
Public Fixed Income      $26        18%          15%             3%           10%         20%        Yes
All Alternative Inv.     $57        39%          41%             -2%          21%         63%        Yes
Liquidity Portfolio      $3          2%           0%             2%           0%           2%        Yes
Total Assets            $145       100%         100%
                                      University of California, Los Angeles Foundation Portfolio
                                                             March 31, 2009

                                                                                                                             Annualized
                                                                                                  Total Return
                                                                                                                             Total Return
                                                              Market Value           Recent           Six         One           Two
                                                                                     Quarter         Month        Year          Year
 UCLA Foundation Aggregate 1)                               $779,436,436     100%        -6.37%        -19.85%     -27.60%       -13.10%
  Policy Benchmark                                                                      -6.22%        -18.44%     -25.59%       -12.21%
  Variance to Policy Benchmark                                                          -0.15%          -1.41%      -2.01%        -0.89%
 U.S. Equity                                                $118,635,613     15%         -9.91%        -30.71%     -38.64%       -23.51%
  RUSSELL 3000                                                                        -10.80%         -31.12%     -38.20%       -23.81%
  Variance to Benchmark                                                                +0.89%          +0.41%       -0.44%       +0.30%
 Non-U.S./Global Equity-Dev. Mkt.                             $98,887,303    13%       -10.55%         -30.89%     -47.11%       -27.26%
  MSCI WORLD EX US (NET)                                                              -13.14%         -31.51%     -46.31%       -27.20%
  Variance to Benchmark                                                                +2.59%          +0.62%       -0.80%        -0.06%
 Emerging Market Equity                                       $37,956,427     5%         -1.73%        -29.49%     -48.01%       -20.75%
  MSCI EMERGING MARKETS (NET)                                                            0.95%        -26.91%     -47.07%       -19.86%
  Variance to Benchmark                                                                 -2.68%          -2.58%      -0.94%        -0.89%

 Core Fixed Income                                            $65,936,356     8%        1.61%           5.01%       0.79%          4.84%
   LB AGGREGATE                                                                         0.12%           4.70%       3.13%          5.37%
   Variance to Benchmark                                                               +1.49%          +0.31%      -2.34%         -0.53%
 TIPS                                                                 NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                      NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                    NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                 NA
   Benchmark
   Variance to Benchmark

 Private Equity                                             $134,547,780     17%       -14.78%         -20.11%     -19.98%        -5.49%
   RUSSELL 3000 INDEX PLUS 300BPS                                                       -9.75%        -28.36%      -34.76%      -20.55%
   Variance to Benchmark                                                                -5.03%         +8.25%     +14.78%       +15.06%
 Abs. Ret./Mktable Alts./Hedge Fds.                         $224,522,299     29%         2.64%           -7.29%    -12.80%        -5.50%
   91 DAY T BILL+450BPS                                                                  1.15%           2.50%       5.75%         7.52%
   Variance to Benchmark                                                               +1.49%           -9.79%    -18.55%       -13.02%
 Commodities/Natural Res./Energy                              $49,292,483     6%         0.09%         -22.56%     -26.20%        -3.88%
   RUSSELL 3000 INDEX PLUS 300BPS                                                       -9.75%        -28.36%      -34.76%      -20.55%
   Variance to Benchmark                                                               +9.84%          +5.80%      +8.56%       +16.67%
 Real Estate                                                  $45,053,635     6%       -18.32%         -31.53%     -31.08%       -15.14%
   NAREIT EQUITY SHARE PRICE INDEX                                                    -31.86%         -58.30%      -58.16%      -41.20%
   Variance to Benchmark                                                              +13.54%         +26.77%     +27.08%       +26.06%
 Liquidity Accounts                                          ($2,451,670)     0%            NA               NA         NA            NA
   91 DAY T-BILL                                                                            NA               NA         NA            NA
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents GEP                                                 $2,776,934     0%        -5.60%         -18.40%    -25.76%        -11.98%
   Regents Vintage Private Equity                              $4,099,711     1%       -16.73%         -21.02%    -28.16%         -3.48%

Notes: Returns are net of all fees.
                              University of California, Los Angeles Foundation Portfolio
                                                   Asset Allocation
                                                    March 31, 2009


                                                                Variance                                  Policy Range
                                               Benchmark          from                                    Compliance
                         Assets       Actual     Policy        Benchmark                                     (Actual
                          ($M)      Allocation Allocation        Policy            Policy Range            Allocation)
Public Equity             $257         33%        34%              -1%           17%         59%               Yes
Public Fixed Income        $67          9%         8%               1%           6%          28%               Yes
All Alternative Inv.      $459         59%        58%               1%           16%         65%               Yes
Liquidity Portfolio       ($2)          0%         0%               0%           0%           0%              -0.3%
Total Assets              $779        100%       100%

The calculation of the UCLA Foundation Policy Benchmark reflects actual weights which deviate from their long-term target
weights. The asset class weights utilized in the calculation of the benchmark for quarter-end are as follows: 33.2% Public
Equities, 8.1% Public Fixed Income and 58.8% Alternative Investments.
                                      University of California, Merced Foundation Portfolio
                                                          March 31, 2009

                                                                                                                       Annualized
                                                                                              Total Return
                                                                                                                       Total Return
                                                           Market Value          Recent            Six       One          Two
                                                                                 Quarter          Month      Year         Year
 UCM Foundation Aggregate                                   $3,739,194    100%      -5.60%         -18.40%   -25.76%       -11.98%
  Policy Benchmark                                                                  -5.03%         -14.67%   -21.48%        -9.25%
  Variance to Policy Benchmark                                                      -0.57%          -3.73%    -4.28%        -2.73%
 U.S. Equity                                                       NA
  Benchmark
  Variance to Benchmark
 Non-U.S./Global Equity-Dev. Mkt.                                  NA
  Benchmark
  Variance to Benchmark
 Emerging Market Equity                                            NA
  Benchmark
  Variance to Benchmark

 Core Fixed Income                                                 NA
   Benchmark
   Variance to Benchmark
 TIPS                                                              NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                   NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                 NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                              NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                    NA
   Benchmark
   Variance to Benchmark
 Abs. Ret./Mktable Alts./Hedge Fds.                                NA
   Benchmark
   Variance to Benchmark
 Commodities/Natural Res./Energy                                   NA
   Benchmark
   Variance to Benchmark
 Real Estate                                                       NA
   Benchmark
   Variance to Benchmark
 Liquidity Accounts                                                NA
   Benchmark
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents GEP                                              $3,739,194    100%       -5.60%        -18.40%   -25.76%       -11.98%
Notes: Returns are net of all fees.
                                 University of California, Merced Foundation Portfolio
                                                    Asset Allocation
                                                     March 31, 2009


                                                               Variance                          Policy Range
                                               Benchmark         from                            Compliance
                        Assets        Actual     Policy       Benchmark                             (Actual
                         ($M)       Allocation Allocation       Policy           Policy Range     Allocation)
Public Equity             $1           40%        44%             -4%          37%         51%        Yes
Public Fixed Income       $1           20%        21%             0%           15%         25%        Yes
All Alternative Inv.      $1           40%        36%             4%           30%         40%        Yes
Liquidity Portfolio       $0            0%         0%             0%           0%          10%        Yes
Total Assets              $4          100%       100%

The UC Merced Foundation utilizes the GEP Policy Benchmark.
                                      University of California, Riverside Foundation Portfolio
                                                           March 31, 2009

                                                                                                                             Annualized
                                                                                                Total Return
                                                                                                                             Total Return
                                                             Market Value           Recent          Six          One            Two
                                                                                    Quarter        Month         Year           Year
 UCR Foundation Aggregate                                   $62,787,976     100%       -4.31%       -14.25%     -24.42%           -9.46%
  Policy Benchmark                                                                    -7.49%        -21.27%     -31.28%         -16.43%
  Variance to Policy Benchmark                                                        +3.18%         +7.02%      +6.86%          +6.97%
 U.S. Equity                                                          NA
  Benchmark
  Variance to Benchmark
 Global Balanced 1)                                         $20,682,134     33%        -8.29%        -21.30%     -30.55%         -13.61%
  80% MSCI AC+5% BC AGG+15% CITI 3M T-BILL                                            -8.47%        -24.72%     -33.05%         -16.44%
  Variance to Benchmark                                                               +0.18%         +3.42%      +2.50%          +2.83%
 Non-US/Global Eq Dev                                                 NA
  Benchmark
  Variance to Benchmark
 Emerging Market Equity                                               NA
  Benchmark
  Variance to Benchmark

 Core Fixed Income                                                    NA
   Benchmark
   Variance to Benchmark
 TIPS                                                                 NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                      NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                    NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                 NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                       NA
   Benchmark
   Variance to Benchmark
 Abs. Ret./Mktable Alts./Hedge Fds.                         $12,708,599     20%         7.25%              NA           NA             NA
   S&P 500                                                                           -11.01%
   Variance to Benchmark                                                             +18.26%
 Commodities/Natural Res./Energy                              $2,359,326     4%        -2.82%         -7.98%     -27.90%          -7.85%
   WILSHIRE ENERGY SECTOR                                                             -9.86%        -30.52%      -39.15%        -14.21%
   Variance to Benchmark                                                              +7.04%        +22.54%     +11.25%          +6.36%
 Real Estate                                                          NA
   Benchmark
   Variance to Benchmark
 Liquidity Accounts                                         $27,037,918     43%        0.17%          0.50%       1.73%           2.88%
   91 DAY T-BILL                                                                       0.05%          0.27%       1.21%           2.90%
   Variance to Benchmark                                                              +0.12%         +0.23%      +0.52%          -0.02%

Notes: Policy benchmark includes components for equity (MSCI All Country World) and fixed income (Barclays Aggregate). The equity
component of the policy benchmark (MSCI All Country World) includes allocations to developed and emerging markets stocks and natural
resources. Aggregate market value excludes "other" endowed assets. Returns are net of all fees.
                            University of California, Riverside Foundation Portfolio
                                                Asset Allocation
                                                 March 31, 2009


                                                           Variance                          Policy Range
                                             Benchmark       from                            Compliance
                       Assets     Actual       Policy     Benchmark                             (Actual
                        ($M)    Allocation   Allocation     Policy           Policy Range     Allocation)
Public Equity            $22       35%          71%         -36%           16%         93%        Yes
Public Fixed Income      $4         6%          29%         -23%           0%          50%        Yes
All Alternative Inv.     $7        10%           0%          10%           0%          43%        Yes
Liquidity Portfolio      $31       49%           0%          49%           0%          50%        Yes
Total Assets             $63      100%         100%
                                      University of California, San Diego Foundation Portfolio
                                                           March 31, 2009
                                                                                                                           Annualized
                                                                                                 Total Return
                                                                                                                           Total Return
                                                               Market Value           Recent         Six        One           Two
                                                                                      Quarter       Month       Year          Year
 UCSD Foundation Aggregate                                   $256,419,244     100%         -7.23%     -21.36%    -28.02%       -13.53%
  Policy Benchmark                                                                        -5.41%     -19.40%    -27.39%       -12.74%
  Variance to Policy Benchmark                                                            -1.82%       -1.96%     -0.63%        -0.79%
 U.S. Equity                                                  $30,515,378      12%       -11.13%      -28.15%    -34.42%       -22.68%
  RUSSELL 3000                                                                          -10.80%      -31.12%    -38.20%       -23.81%
  Variance to Benchmark                                                                   -0.33%      +2.97%     +3.78%        +1.13%
 Non-U.S./Global Equity-Dev. Mkt.                              $4,163,611       2%       -13.99%           NA         NA            NA
  Benchmark                                                                             -13.94%
  Variance to Benchmark
 Emerging Market Equity                                        $3,403,478       1%        -0.04%      -28.62%    -47.38%             NA
  MSCI EMERGING MARKETS (NET)                                                             0.95%      -26.91%    -47.07%
  Variance to Benchmark                                                                  -0.99%        -1.71%     -0.31%

 Core Fixed Income                                                     NA
   Benchmark
   Variance to Benchmark
 TIPS                                                                  NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                       NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                     NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                  NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                        NA
   Benchmark
   Variance to Benchmark
 Abs. Ret./Mktable Alts./Hedge Fds.                                    NA
   Benchmark
   Variance to Benchmark
 Commodities/Natural Res./Energy                                       NA
   Benchmark
   Variance to Benchmark
 Real Estate                                                  $10,616,605       4%       -22.32%      -42.38%    -44.92%       -28.84%
   NCREIF PROPERTY INDEX                                                                  -7.33%     -15.01%     -14.68%        -1.56%
   Variance to Benchmark                                                                -14.99%      -27.37%    -30.24%       -27.28%
 Liquidity Accounts                                                    NA
   Benchmark
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents STIP                                                $4,024,178       2%        0.80%         1.83%     3.79%          4.33%
   Regents GEP                                               $180,054,582      70%       -5.60%       -18.40%   -25.76%        -11.98%
   Regents Real Estate                                         $3,078,912       1%      -20.22%       -29.33%   -34.08%             NA
   Regents Absolute Return                                    $15,474,757       6%        1.47%       -15.00%   -16.39%             NA
   Regents Vintage Private Equity                              $5,087,744       2%      -16.73%       -20.29%   -28.47%         -5.21%

Notes: Aggregate market value excludes "other" endowed assets. Returns are net of all fees.
                              University of California, San Diego Foundation Portfolio
                                                  Asset Allocation
                                                   March 31, 2009


                                                                                                 Policy Range
                                              Benchmark Variance from                            Compliance
                       Assets      Actual       Policy   Benchmark                                  (Actual
                        ($M)     Allocation   Allocation    Policy               Policy Range     Allocation)
Public Equity           $110        43%          46%         -3%               42%         72%        Yes
Public Fixed Income      $29        11%          10%         1%                 8%         28%        Yes
All Alternative Inv.    $114        44%          44%         0%                10%         50%        Yes
Liquidity Portfolio       $4         2%           0%         2%                 0%          0%       1.6%
Total Assets           $256         100%          100%
                                     University of California, San Francisco Foundation Portfolio
                                                             March 31, 2009

                                                                                                                                  Annualized
                                                                                                       Total Return
                                                                                                                                  Total Return
                                                                 Market Value            Recent            Six          One          Two
                                                                                         Quarter          Month         Year         Year
 UCSF Foundation Aggregate                                     $364,886,372     100%          -3.79%        -17.66%     -26.33%       -15.01%
  Policy Benchmark                                                                           -8.25%        -22.63%     -30.22%       -17.12%
  Variance to Policy Benchmark                                                              +4.46%          +4.97%      +3.89%        +2.11%
 U.S. Equity                                                    $59,546,872      16%          -7.95%        -29.75%     -37.63%       -25.27%
  RUSSELL 3000                                                                             -10.80%         -31.12%     -38.20%       -23.81%
  Variance to Benchmark                                                                     +2.85%          +1.37%      +0.57%         -1.46%
 Non-U.S./Global Equity-Dev. Mkt.                               $52,780,256      14%        -11.81%         -27.47%     -40.97%       -24.00%
  MSCI EAFE - NET                                                                          -13.94%         -31.11%     -46.51%       -27.85%
  Variance to Benchmark                                                                     +2.13%          +3.64%      +5.54%        +3.85%
 Emerging Market Equity                                         $23,057,592        6%         -0.85%        -29.04%     -46.27%       -20.27%
  S&P/IFC EM INVESTABLE COMPOSITE                                                             1.24%        -27.00%     -47.20%       -20.02%
  Variance to Benchmark                                                                      -2.09%          -2.04%     +0.93%         -0.25%

 Core Fixed Income                                              $76,901,396      21%         0.60%            3.40%      -0.82%        1.83%
   LB AGGREGATE                                                                              0.12%            4.70%      3.13%         5.37%
   Variance to Benchmark                                                                    +0.48%           -1.30%     -3.95%        -3.54%
 TIPS                                                                    NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                         NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                       NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                    NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                 $16,629,793        5%        -4.98%          -6.96%     -11.75%         1.82%
   S&P 500 + 700BPS                                                                         -9.49%         -28.15%      -33.76%      -17.97%
   Variance to Benchmark                                                                    +4.51%         +21.19%     +22.01%       +19.79%
 Abs. Ret./Mktable Alts./Hedge Fds.                             $65,025,292      18%          1.78%         -17.29%     -24.44%       -12.28%
   HEDGE FUND 800BPS ANNUM                                                                   1.94%            3.92%       8.00%         8.00%
   Variance to Benchmark                                                                    -0.16%         -21.21%     -32.44%       -20.28%
 Opportunistic                                                  $24,704,650        7%        -1.18%              NA          NA            NA
   S&P 500                                                                                 -11.01%
   Variance to Benchmark                                                                    +9.83%
 Commodities/Natural Res./Energy                                 $2,919,657        1%        -1.07%         -10.24%     15.11%        21.66%
   Benchmark
   Variance to Benchmark
 Real Estate                                                     $5,753,733       2%       -11.71%          -12.40%     -15.75%        -6.80%
   75% NAREIT + 25% NCREIF                                                                -25.68%          -48.34%      -48.06%      -31.67%
   Variance to Benchmark                                                                  +13.97%          +35.94%     +32.31%       +24.87%
 Liquidity Accounts                                             $37,567,131      10%         -0.01%           -0.09%      0.70%         2.36%
   91 DAY T-BILL                                                                             0.05%            0.27%       1.21%        2.90%
   Variance to Benchmark                                                                    -0.06%           -0.36%      -0.51%       -0.54%
Notes: UCSF Foundation has a consolidated Real Estate & Hard Assets allocation, therefore no separate Commodities/Natural Res/Energy
benchmark has been assigned. Returns are net of all fees.
UCSF Foundation has invested into a new Opportunistic asset class. Although this new asset class falls within the larger Alternative asset
class, it is benchmarked to the S&P 500.
                             University of California, San Francisco Foundation Portfolio
                                                   Asset Allocation
                                                    March 31, 2009


                                                                Variance                                  Policy Range
                                               Benchmark          from                                    Compliance
                         Assets       Actual     Policy        Benchmark                                     (Actual
                          ($M)      Allocation Allocation        Policy            Policy Range            Allocation)
Public Equity             $135         37%        50%            -13%            20%         80%               Yes
Public Fixed Income        $77         21%        10%             11%            5%          25%               Yes
All Alternative Inv.      $115         32%        40%              -8%           18%         63%               Yes
Liquidity Portfolio        $38         10%         0%             10%            0%          10%              0.3%
Total Assets              $365        100%       100%

The calculation of the UC San Francisco Foundation Policy Benchmark reflects a set of interim weights which deviate from
their long-term target weights. The asset class weights of the interim benchmark are as follows: 57.5% Public Equities,
17.5% Public Fixed Income and 25% Alternative Investments.
                                    University of California, Santa Barbara Foundation Portfolio
                                                            March 31, 2009
                                                                                                                              Annualized
                                                                                                   Total Return
                                                                                                                              Total Return
                                                                                      Recent            Six         One           Two
                                                              Market Value
                                                                                      Quarter         Month        Year          Year
 UCSB Foundation Aggregate                                   $76,447,825     100%        -5.66%         -20.77%    -32.05%         -18.44%
  Policy Benchmark                                                                      -9.37%        -24.91%     -30.76%            0.95%
  Variance to Policy Benchmark                                                          +3.71%          +4.14%      -1.29%        -19.39%
 U.S. Equity                                                 $14,897,904      19%        -9.29%         -27.50%    -35.94%              NA
  S&P 500                                                                              -11.01%         -30.54%    -38.09%               NA
  Variance to Benchmark                                                                 +1.72%          +3.04%     +2.15%
 Global Balanced                                                $676,643       1%            NA              NA         NA            NA
  S&P 500 20%, MSCI EAFE 20%, Barclays Agg 40%                                               NA              NA         NA            NA
  Variance to Benchmark
 Non-U.S. Equity                                             $10,448,785      14%       -16.30%         -32.32%       NA              NA
  MSCI WORLD EX US (NET)                                                               -13.14%         -31.51%        NA              NA
  Variance to Benchmark                                                                  -3.16%          -0.81%
 Emerging Market Equity                                       $4,240,029       6%         -0.64%        -28.05%       NA              NA
  MSCI EMERGING MARKETS                                                                   7.24%        -21.54%        NA              NA
  Variance to Benchmark                                                                  -7.88%          -6.51%

 Core Fixed Income                                           $20,542,880      27%        1.25%           -1.08%     -7.76%            NA
   LB AGGREGATE                                                                          0.12%           4.70%      3.13%             NA
   Variance to Benchmark                                                                +1.13%          -5.78%    -10.89%
 TIPS                                                                 NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                      NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                    NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                 NA
   Benchmark
   Variance to Benchmark

 Private Equity                                               $1,855,045       2%         -0.68%            NA        NA              NA
   RUSSELL 3000 INDEX PLUS 300BPS                                                        -9.75%             NA        NA              NA
   Variance to Benchmark                                                                +9.07%
 Abs. Ret./Mktable Alts./Hedge Fds.                          $13,966,532      18%          1.63%        -12.16%       NA              NA
   LIBOR + 450bps                                                                         1.22%           2.74%       NA              NA
   Variance to Benchmark                                                                +0.41%         -14.90%
 Commodities/Natural Res./Energy                                $732,743       1%        19.58%         -20.98%   -42.63%          -9.54%
   RUSSELL 3000 INDEX PLUS 300BPS                                                        -9.75%        -28.36%    -34.76%        -20.55%
   Variance to Benchmark                                                               +29.33%          +7.38%     -7.87%        +11.01%
 Real Estate                                                  $2,250,537       3%       -30.07%         -56.09%        NA              NA
   NAREIT ALL SHARE PRICE INDEX                                                        -29.78%         -55.44%         NA              NA
   Variance to Benchmark                                                                 -0.29%          -0.65%
 Liquidity Accounts                                           $6,830,376       9%          0.70%          1.43%    4.93%              NA
   ML 3-MO US T-BILL                                                                      0.05%           0.27%    1.21%              NA
   Variance to Benchmark                                                                +0.65%          +1.16%    +3.72%
 UC Regents Mgd Funds
     Regents STIP 1)                                             $6,532,564     9%        0.80%        1.83%        3.83%           4.35%
Notes: Returns are net of all fees.
1)
   The 'Liquidity Accounts' performance and market value includes both STIP and investment & operational clearing accounts.
   STIP is also broken out separately to reflect those funds managed by the UC Regents.
                          University of California, Santa Barbara Foundation Portfolio
                                                Asset Allocation
                                                 March 31, 2009


                                                           Variance                          Policy Range
                                             Benchmark       from                            Compliance
                       Assets     Actual       Policy     Benchmark                             (Actual
                        ($M)    Allocation   Allocation     Policy           Policy Range     Allocation)
Public Equity            $30       39%          40%           -1%          40%         54%       -0.9%
Public Fixed Income      $21       27%          18%           9%           18%         28%        Yes
All Alternative Inv.     $19       25%          42%         -17%           25%         35%       -0.4%
Liquidity Portfolio      $7         9%           0%           9%           0%          10%        Yes
Total Assets             $76      100%         100%
                                      University of California, Santa Cruz Foundation Portfolio
                                                            March 31, 2009

                                                                                                                            Annualized
                                                                                                 Total Return
                                                                                                                           Total Return
                                                              Market Value          Recent           Six        One           Two
                                                                                    Quarter         Month       Year          Year
 UCSC Foundation Aggregate                                   $39,142,181     100%       -5.34%        -17.90%    -25.18%       -11.60%
  Policy Benchmark                                                                     -5.03%        -14.67%    -21.48%         -9.25%
  Variance to Policy Benchmark                                                         -0.31%          -3.23%     -3.70%        -2.35%
 U.S. Equity                                                         NA
  Benchmark
  Variance to Benchmark
 Non-U.S./Global Equity-Dev. Mkt.                                    NA
  Benchmark
  Variance to Benchmark
 Emerging Market Equity                                              NA
  Benchmark
  Variance to Benchmark

 Core Fixed Income                                                   NA
   Benchmark
   Variance to Benchmark
 TIPS                                                                NA
   Benchmark
   Variance to Benchmark
 High Yield Debt                                                     NA
   Benchmark
   Variance to Benchmark
 Non-U.S./Global Fixed - Dev. Mkt.                                   NA
   Benchmark
   Variance to Benchmark
 Emerging Market Debt                                                NA
   Benchmark
   Variance to Benchmark

 Private Equity                                                      NA
   Benchmark
   Variance to Benchmark
 Abs. Ret./Mktable Alts./Hedge Fds.                                  NA
   Benchmark
   Variance to Benchmark
 Commodities/Natural Res./Energy                                     NA
   Benchmark
   Variance to Benchmark
 Real Estate                                                         NA
   Benchmark
   Variance to Benchmark
 Liquidity Accounts                                                  NA
   Benchmark
   Variance to Benchmark
 UC Regents Mgd Funds
   Regents GEP                                              $38,155,385      97%        -5.60%        -18.40%   -25.76%        -11.98%
   Regents STIP                                               $986,796        3%         0.80%          1.83%     3.79%          4.33%
Notes: Returns are net of all fees.
                             University of California, Santa Cruz Foundation Portfolio
                                                 Asset Allocation
                                                   March 31, 2009


                                                            Variance                          Policy Range
                                            Benchmark         from                            Compliance
                        Assets     Actual     Policy       Benchmark                             (Actual
                         ($M)    Allocation Allocation       Policy           Policy Range     Allocation)
Public Equity             $15       39%        44%             -5%          37%         51%        Yes
Public Fixed Income       $8        20%        21%             -1%          15%         25%        Yes
All Alternative Inv.      $15       39%        36%              3%          30%         40%        Yes
Liquidity Portfolio       $1         3%         0%              3%          0%          10%        Yes
Total Assets              $39      100%       100%

The UC Santa Cruz Foundation utilizes the GEP Policy Benchmark.

				
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