University of California, San Diego
PAE-16: Committee on Socially Responsible Investment

Both the UC San Diego Endowment Fund as well as the UC Regents Endowment Fund have investment responsibility committees that adhere to the requirements in the Uniform Prudent Management of Institutional Funds Act. The Endowment investment policy diversifies investments and provides a balance to enhance total return while avoiding undue risk in any single asset class or investment category. The UC Regents manage 79% of the UC San Diego Endowment Fund's assets and external investment managers manage the other 20%. About 5% ($250M) of the managed Regents’ Endowment Fund are in Emerging Markets which have recently been populated by environmental and CleanTech equities, and the Regents’ benchmark of performance is on the MSCI Emerging Market Free Net. http://www.ucop.edu/treasurer/invpol/GEP_IPS_02-24-09.pdf

The UC San Diego Foundation is a nonprofit 501(c)(3) corporation (Tax ID #95-2872494) which was established in 1972, in response to the University's recognition that private support is essential to maintaining and enhancing the margin of excellence at UC San Diego. The Foundation helps UC San Diego obtain private gifts (in support of research, teaching, and public service) and manages the gift assets. Distinguished community members, University administrators, and faculty and alumni representatives make up the 44-member Board of Trustees that governs the Foundation. The Board meets quarterly in regular session, and the Foundation's standing committees meet throughout the year to review Foundation business and to recommend action. The Foundation's standing committees include Audit, Development, Executive, Investment/Finance, Nominating, Stewardship, and Student Foundation. Additionally, the Foundation has two ad hoc committees, Art Review and Planned Gifts.

From the Foundation's inception in 1972, members of the Board of Trustees have formed a crucial link between UC San Diego and the community. The Trustees communicate about UC San Diego to the public, and in so doing, build interest in the campus and support for its programs. The excellence that UC San Diego has achieved has been assisted by the community, and the Trustees and volunteers who serve the UC San Diego Foundation continue to play a critical role in the growth and success of the campus.

The Foundation accepts, administers, and invests private gifts in the form of cash and real or personal property and manages the funds either as endowments or as funds available for current expenditure.The Foundation’s net assets at June 30, 2009 were $417.1 million, of which the endowment comprised approximately $280 million. (These amounts are stated without regard to GASB 33 accounting rules for comparative purposes for the past ten years.)

Major initiatives at UC San Diego funded through gifts to the Foundation include the California Institute for Telecommunications and Information Technology [Calit2], the Geisel Endowment for the UC San Diego Libraries, the Joan and Irwin Jacobs School of Engineering (JSOE), Kavli Institute for Brain and Mind, the William J. von Liebig Center for Entrepreneurism and Technology Advancement, The Preuss School, Rady School of Management, the Beyster Institute within the Rady School of Management, Skaggs School of Pharmacy, one hundred thirty-seven endowed professorships, student scholarships and fellowships, research support, departmental support, and support for unrestricted gifts. Buildings constructed with partial or full funding from gifts to the Foundation include the Shiley Eye Center, the Powell Structures Laboratory, Thornton Hospital, Bannister House, the Birch Aquarium at Scripps, the Price Center, the Cecil and Ida Green Faculty Club, the Moores UCSD Cancer Center, and the Liechtag Family Biomedical Research Building. Current initiatives include the Sulpizio Family Cardiovascular Center, expansion of Thornton Hospital and east campus medical facilities, a new Student Center, the Conrad Prebys Music Center, and the expansion of north campus housing. The continuing growth in these areas is a reflection of the University's commitment to the development of private support to sustain its quest for excellence.

Additionally, The UC Regents have prohibited the purchase of securities issued by tobacco companies. The purchase of securities issued by tobacco companies is prohibited in separately managed accounts. The Regents have defined a tobacco company as “a company which derives its revenues from the manufacture and distribution of tobacco products or, if a diversified company, that no other business line contributes more revenues or earnings than tobacco products." The Treasurer will determine what constitutes a tobacco company based on standard industry classification of the major index providers (e.g., Russell, MSCI) and communicate this list to investment managers annually and whenever changes occur. The Committee recognizes that the establishment of social investing restrictions limits investment opportunities and should be accompanied by adjusting performance evaluation standards appropriately.

For a complete list, please consult:
http://ucsdfoundation.ucsd.edu/board_of_trustees.asp