The University of California Board of Regents approved updates to investment policy guidance and formalized endowment spending procedures as part of the Investments Committee report.

The committee presented a five-year review of investment policy ranges and recommended modest adjustments to target ranges following a prior reduction in hedge-fund exposure and removal of “absolute return” as a guiding category. The committee also formalized a 5 percent spending policy on endowments that the university had begun applying in practice last year.

The committee chair reported strong recent investment returns and said total assets under management were approaching $198 billion at the close of the fiscal year on June 30. Despite strong market performance, the chair noted the pension fund’s actuarial coverage remained at roughly 87 percent and said the committee will continue to study the coverage gap.

Members moved and seconded the investment-policy item and approved it by roll call. The committee said more detailed return figures and supporting materials would be posted for regents following the meeting.

(Ending) The investment-policy adjustments were adopted; the committee will continue to analyze pension funding levels and post detailed performance metrics to the board’s materials.