INVESTMENT POLICY FOR THE UC CAMPUS FOUNDATIONS
Approved November 2006

The Regents' generalist Investment Consultant shall conduct an annual review of each CampusFoundation's investment policy and performance on an annual basis, including:

.Asset allocation relative to its policy, and

.Performance by asset class and relative to its benchmarks, and provide a report to the Committee on Investments annually on their findings.In addition, on an annual basis, beginning with the Fiscal Year 2006-2007, the Regents' investmentconsultant will review the written investment policies and governance structure of each Foundationto ensure that each set of written policies includes, at a minimum:

.Asset allocation target percentages,

.Ranges for each asset class,

.Policy benchmarks for each asset class and in total, and

.Investment guidelines for each asset class.

Foundations should adopt the investment policies and guidelines of the GEP If any Foundation'spolicies differ materially from those of the GEP, the Foundation is required to explain thedifferences to The Regents' generalist investment consultant. The Regents' generalist investment consultant shall review, initially and at the time of any change, each Foundation's asset allocation policy. If a Foundation's target asset class weights are (or will be) outside the ranges currently setannually for the GEP for the next fiscal year, the Foundation is required to explain its rationale to The Regents' generalist investment consultant. The Regents' generalist investment consultant will then provide an assessment and recommendation to the Committee on Investments, at the next scheduled meeting of the Committee on Investments. Any exception to the Regents' Investment Policy must be approved by the Committee on Investments or the Foundation must immediately move to comply with the approved GEP Policies and demonstrate such compliance to the Committee on Investments.

If the Committee on Investments approves an exception to The Regents investment policies, it will be reevaluated by The Regents' Investment Consultant on an annual basis and brought back to theCommittee on Investments for approval each successive year.

If any Foundation makes changes to its policy (asset allocation percentages and/or benchmarks) that are outside the GEP guidelines, it must communicate such change to The Regents' generalist investment consultant and must be approved by the Committee on Investments before such change can be effective.

Beginning next fiscal year, the Committee on Investments will require the Foundations to also be in compliance with the GEP's risk budget, which will also be reviewed by the Consultant. The Treasurer's Office will work with the Foundations over the course of the next year to ensure that the Foundations are informed of the key assumptions underlying the risk budget.