University of California, Los Angeles
PAE-T2-9: Investment Disclosure

The purpose of The UCLA Foundation's Endowment is to support the educational mission of the University of California, Los Angeles by providing a reliable source of funds for current and future use. The Endowment assets have an indefinite time horizon that runs concurrently with the existence of the University in perpetuity. As such, the investment portfolio assumes a time horizon that may extend beyond a normal market cycle and therefore may assume an appropriate level of risk as measured by the standard deviation of annual returns. It is expected that professional management and portfolio diversification will smooth volatility and assure a reasonable consistency of return. Investment of the Endowment is the responsibility of the Investment Committee and the Investment Management Committee. Under the direction and approval of the Board of Directors, the Investment Committee recommends investment objectives and policies, recommends asset allocation and monitors the implementation and performance of the Foundation's investment program. Under the direction and approval of the Board of Directors, the Investment Management Committee is responsible for selection and termination of managers. The Committees are supported by the office of the Vice President-Finance of The UCLA Foundation, which, with support from independent third party investment management consultants who analyze investment policies and management strategies, make recommendations to the Committees and supervise operations and investment activities.