The University of California’s office of the treasurer of the regents, the school’s governing body that is responsible for a $71.5bn portfolio of retirement and endowment funds, is increasing its allocation to the emerging markets, including frontier market funds, within its public equity programme.
The university plans to invest with several managers who focus solely on Brazil and China and is also evaluating the possibility of investing with managers who invest in frontier markets, stated senior managing director of public equity, William Coaker, during a recent investment committee meeting.
Coaker’s office is evaluating prospects for investing with regional managers in markets including Latam. The university intends to reduce the number of globally diversified managers and “increase exposure to companies doing more business in their own countries or other emerging market countries, rather than those exporting to the US or Europe”.
The University of California Retirement System (UCRS) has a long term target of 7% to emerging markets equity.
