What were the steps involved in the review process leading up to adoption of the new investment policy guidelines?

1. Nov. 16, 1998: Then-Chairman John G. Davies appointed a Commission to Review the Office of the Treasurer with Regent Gerald Parsky, then chairman of the Regents' Committee on Investments, as its chairman. The commission included Regents Howard Leach and Judith Hopkinson, along with outside investment experts.
2. Dec. 23, 1998: Commission member Russell Gould suggested the firms of Wilshire Associates and William H. Mercer as possible consultants to conduct the review.
3. Feb. 2, 1999: Initiating a competitive bid process, a Request for Proposals was sent to firms, including Wilshire Associates, Mercer, Callan Associates and Fred Russell Company. The RFP process was overseen by UC's administrative staff and the regents' Committee on Investments, and the Board was kept informed.
4. March 15, 1999: A contract with Wilshire Associates, reviewed and approved by the regents' general counsel, became effective, to end June 30, 1999.
5. July 16-17, 1999: The Wilshire review findings were reported to the Regents' Committee on Investments.
6. Sept. 24, 1999: The initial contract with Wilshire Associates was amended to authorize further study from September 24 through December 31, 1999.
7. Nov. 18-19, 1999: Acting under its established authority, the Board of Regents established an investment advisory committee to monitor UC's portfolio holdings.
8. Jan. 19, 2000: The Wilshire Associates' study was presented to the Board of Regents.
9. March 16-17, 2000: The Board of Regents unanimously adopted an asset allocation plan, with 28 "lower-risk" measures designed to improve the flexibility, to reduce volatility and to increase the accountability of the pension funds' investment strategies. The revised policies updated previous asset allocation determinations made by the Regents.
10. May 17, 2000: The Board of Regents authorized a second amendment to the Wilshire contract, to end March 31, 2001. The amended contract will provide Wilshire's continuing role to review, monitor and assist the UC Treasurer's Office in implementing the recommendations of the initial study and the asset allocation plan.

Why was Wilshire Associates selected?

The selection of Wilshire Associates was conducted in accord with University procedures after a public solicitation of proposals, and with knowledge of the Board of Regents and senior university officials. One of the world's largest and most respected financial consulting firms, Wilshire Associates serves as a consultant to CalPERS and several higher education clients, including the Iowa State Board of Regents, the University of Wisconsin and the University of Pittsburgh.

How much is Wilshire Associates receiving for its work?

The original contract for an overall study of the Treasurer's Office was for a maximum of $97,000 for work to be completed by June 30, 1999. The contract was amended to provide a more complete study and analysis of the university's asset allocation plan, investment structure analysis, an investment policies and guidelines statement, and an investment performance and governance analysis, to be completed by Dec. 31, 1999. The fee for this work was $250,000. At its May 2000 meeting, the Regents authorized a second contract amendment at $350,000 for work through March 31, 2001.

What about charges that Regent Gerald Parsky asked Wilshire Associates for a political contribution to the Bush presidential campaign in exchange for the UC contract? 

The Wilshire contract continuation was supported by Regents across the political spectrum - Democrats as well as Republicans. Regent Parsky has unequivocally denied he arranged for the Wilshire contract in return for a political contribution, or even knew that Wilshire had made a contribution to the Bush campaign. Dennis Tito, Wilshire's president, has publicly stated the donation was made without Parsky's knowledge. 

Will Wilshire Associates be managing the funds?

Wilshire Associates' role is to review, advise and monitor the process of developing and implementing the regents' revised investment policies. It does not act as investment fund managers. 

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