Release Date: 09-30-2018

UC TIPS Fund Benchmark Morningstar Category

BBG Barclays USTIPS Index

Inflation-Protected Bond

Investment Information

Investment ObjectiveThe Fund seeks to provide long-term return and inflation protectionconsistent with an investment in U.S. Government inflation-indexedsecurities or TIPS.

Investment StrategyThe UC TIPS (Treasury Inflation-Protected Securities) Fund is a bond fundmanaged by the Office of the Chief Investment Officer of the Regentsaccording to the policies established by the Regents of the University ofCalifornia.

The Fund invests in inflation-indexed securities issued by the U.S. Treasury.Inflation-indexed securities are designed to protect future purchasingpower. The principal value is adjusted for changes in inflation, and interestis accrued on the inflation-adjusted principal. The Fund's performancebenchmark is the Bloomberg Barclays U.S. TIPS Index, and the Fund seeksto provide a total return that matches the Index.

The TIPS Fund is composed primarily of U.S. Treasury notes and bondswhose principal is adjusted for changes in the Consumer Price Index. TheFund invests in inflation-indexed securities issued by the U.S. Treasury.Inflation-indexed securities are designed to protect future purchasingpower. The principal value is adjusted for changes in inflation, and interestis accrued on the inflation-adjusted principal. The Fund's performancebenchmark is the Bloomberg Barclays U.S. TIPS Index, and the Fund seeksto provide a total return that matches the Index.

Who May Want To InvestThe Fund may be suitable for participants with a long-term investmenthorizon wishing to allocate a portion of their portfolio to a fund that mayprotect from the effects of inflation. The fund may not be suitable forparticipants with a long term investment horizon looking for a single fundsolution.

Fees and Expenses as of 03-30-2018

Total Annual Operating ExpenseGross

0.03%

Gross expense ratio is a measure of what itcosts to invest in the fund, expressed as apercentage of its assets, as a dollar amount, orin basis points. These are costs the investorpays through a reduction in the investment’srate of return. This ratio also includesAcquired Fund Fees and Expenses, which areexpenses indirectly incurred by a fund throughits ownership of shares in underlying funds. The performance of Total Return Funds isdriven by a combination of price appreciationand income.

Fund Characteristics

Inception Date 04/01/04

Fund AUM ($M) 217.56

Total Number of Holdings 34

Beta 0.85

Standard Deviation (Risk) in % 2.24

Performance (Net of Fee Returns)

4

3

2

1

0

-1

YTD YTD YTD YTD YTD YTD YTD

Total Return %as of 09-30-18

Fund Return %Benchmark Return %

Average annual, if greaterthan 1 year

YTD 3 Mo 1 Year 3 Year 5 Year 10 Year Inception

-0.33 -0.68 0.79 2.25 1.63 3.64 3.89 Fund Return %

-0.84 -0.82 0.41 2.04 1.37 3.32 3.59 Benchmark Return %

0.51 0.14 0.38 0.21 0.26 0.32 0.30 Relative %

Click here for current performance

The performance data featured represents past performance, which is no guarantee of future results. Investmentreturn and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell yourshares. Current performance may be higher or lower than the performance data quoted. Fund returns reflect all itemsof income, gain and loss and the reinvestment of dividends and other income and are calculated in US dollars. Indexreturns are unmanaged and do not reflect the deduction of any fees or expenses. Index returns reflect all items ofincome, gain and loss and the reinvestment of dividends and other income. If performance for a time period is N/A,Fund's inception date is less than time period specified.

Page 1 of 3

Portfolio Analysis as of 09-30-18

Composition

% FundBonds 99.05Cash 0.95Non-U.S. Stocks 0.00U.S. Stocks 0.00Other 0.00

Morningstar Fixed Income Style Box™ as of 09-30-18

High

Med

LowC

redit Quality

Ltd Mod ExtDuration

Top 10 Holdings

% Fund

United States Trea 0.12% 04-15-22 11.70

United States Trea 0.12% 04-15-19 11.06

United States Trea 2.38% 01-15-25 8.99

United States Trea 0.12% 04-15-21 8.58

United States Trea 0.62% 01-15-24 8.37

United States Trea 0.25% 01-15-25 6.55

United States Trea 0.38% 01-15-27 6.55

United States Trea 0.12% 07-15-26 5.19

United States Trea 2.12% 02-15-40 4.81

United States Treas 0.5% 01-15-28 4.32

Fixed Income Statistics

Avg Eff Duration 7.48

Avg Credit Quality AA

Avg Wtd Price 101.47

Yield to Maturity 2.94

Fixed Income Sectors

% Fund

Government 99.1

Cash/Cash Equivalent 0.9

Corporate 0.0

Securitized 0.0

Municipal 0.0

Other 0.0

Credit Analysis: % Bonds as of 09-30-18

AAA 2 BB 0

AA 98 B 0

A 0 Below B 0

BBB 0 Not Rated 0

UC TIPS Fund

OJ88 ©2018 Morningstar, Inc., Morningstar® Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) isproprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use ofinformation. Past performance is no guarantee of future performance. Visit our investment web site at www.morningstar.com.

Page 2 of 3

RiskWhen interest rates rise, the value of inflation-indexed securities will fall and the Fund's share value will decline. Interest rate risk for this Fund will be higherthan for short term TIPs. The greatest risk occurs when interest rates rise and inflation declines."Risk" refers to the possibility of loss of principal, or alternatively to a rate of investment return below expectations or requirements. While volatility (pricefluctuation) is not synonymous with risk, it is true that high volatility on the downside results in loss, and therefore higher volatility is associated with higherrisk. Volatility, however results in realized losses only if securities are sold after a fall in price.For more information on risk, see the "Investment Risk Factor Guide" available online in the "UCRSP Fund Menu" section at www.myucretirement.com.

Statement on SustainabilityDisclosure of UC’S Sustainability Investment Screening ProcessAs reflected in the UCRSP Investment Implementation Manual, the University believes that investing in businesses with principled ethics and soundenvironmental and social practices simply makes good business sense. While short-term gains can be garnered from businesses taking excessive risks ingovernance, environmental or social standards, such gains can erode quickly and drastically; therefore, we must take a measured approach to the risk andrewards available in the universe of investment options. The Office of the Chief Investment Officer of the Regents (OCIO) works with the investmentmanagers to screen for identified ESG risks, including, for example, the manufacturing of civil firearms. In selecting and monitoring the type of companiesincluded in the funds, the fund managers are responsible for complying with UC’s sustainable investing policy. Mutual funds and collective investment truststhat include assets from other organizations are not subject to UC’s sustainable investing policy. This fund is screened.Please access www.myUCretirement.com website for more information about the University’s commitment to sustainability.

Fees and ExpensesGross expense ratio is a measure of what it costs to invest in the fund, expressed as a percentage of its assets, as a dollar amount, or in basis points. These arecosts the investor pays through a reduction in the investment’s rate of return. This ratio also includes Acquired Fund Fees and Expenses, which are expensesindirectly incurred by a fund through its ownership of shares in underlying funds. The performance of Total Return Funds is driven by a combination of priceappreciation and income.

Additional DisclosuresThe Fund is a separate account managed by the University of California Office of the Chief Investment Officer of the Regents: available exclusively to UCRetirement Savings Program participants. This description is only intended to provide a brief overview of the fund. The Bloomberg Barclays U.S. TIPS Index isan unmanaged index designed to represent securities that protect against adverse inflation and provide a minimum level of real return. To be included in thisindex, bonds must have cash flows linked to an inflation index, be sovereign issues denominated in U.S. currency, and have more than one year to maturity,and, as a portion of the index, total a minimum amount outstanding of 100 million U.S. dollars.The information contained herein regarding the UC Funds has been provided by the University of California Office of the Chief Investment Officer ofthe Regents and is solely the responsibility of the University of California Office of the Chief Investment Officer of the Regents.This investment option is not a mutual fund.

UC TIPS Fund

OJ88 ©2018 Morningstar, Inc., Morningstar® Investment ProfilesTM 312-696-6000. All rights reserved. The information contained herein: (1) isproprietary to Morningstar and/ or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate,complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use ofinformation. Past performance is no guarantee of future performance. Visit our investment web site at www.morningstar.com.

Page 3 of 3