|
July 22, 2002
A message from UC Treasurer
David H. Russ
Dear UC Community:
With the stock market's latest decline and news about corporations'
accounting problems, you may be wondering how the University's Retirement
Plan is faring in this downturn. We want to assure you that the University's
Retirement Plan equity remains strong; benefits to retirees will not
be affected; and employees' future pension benefits are secure.
The UC Retirement Plan is a balanced portfolio, with investments in
a variety of asset classes designed to reduce risk. Thus, while the
major U.S. equity markets declined anywhere from 18-32% over the past
year, our plan's total portfolio performed much better, thanks in part
to a 9.5% gain in its bond portfolio.
UC's approach to the market is to maintain a diversified portfolio
and carefully select its stock investments for long-term returns. Over
the past two years, The Regents have also adopted policies to further
diversify the investment portfolios to include additional asset classes
that minimize the impact of any losses in individual companies and industries.
The results of UC's invest-for-the-long-term strategy have been quite
successful. As a result, no employee has had to pay into the UCRP since
1990.
While the stock markets have been very weak recently, it is important
to see the big picture. Stocks have provided attractive returns over
the long term, with the S&P 500 Index showing an average annualized
return of more than 10% over the past decade.
We will keep you informed of any important news regarding Retirement
Plan investments as circumstances warrant. In the meantime, you may
wish to consult the following online resources regarding the University's
retirement plan and your investments, including your 403(b) and defined
contribution plans:
A
Message from the Treasurer about Equity Investing
http://www.ucop.edu/treasurer/updates/equity_investing.pdf
UC Retirement
System Adds Treasury Inflation Protected Securities (TIPS)
http://www.ucop.edu/treasurer/updates/TIPS.pdf
Performance Information
about UC's Tax-Deferred 403(b) and Defined Contribution Plans
http://www.ucop.edu/bencom/rs/perform.html
Calculate
Your Retirement Savings and Tax Benefits
http://www.ucop.edu/bencom/rs/fortune/index.html
Sincerely,
David H. Russ
Treasure and Vice President for Investments
Return to Front Page
|