The Regents have a duty to continuously monitor investments.
Performance is one of the many factors in their evaluation.
Although the pension fund was performing well, regents believe their fiduciary overview responsibility mandated including outside, independent consultants as advisors and monitors to review the fund and determine if the risk levels set by the Treasurer's Office were appropriate. Independent consultants are commonly used by pension funds of this size. UC's new asset allocation strategy establishes a slight shift in the UCRP and GEP funds' investments in non-U.S. and private equity, broadening the portfolio's diversification and reducing volatility. A diverse portfolio protects the pension funds against inflation, uncertain future economic events and the expected growth in the number of pension members. One step in this approach is the use of the Salomon Long Pension Fund Bond Index as the overall performance objective for the funds fixed-income investments.