Sat, Sep 24, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

CalPERS posts 18.4% return year-to-date

Tuesday, July 15, 2014

Bailey McCann, Opalesque New York:

The California Public Employees' Retirement System (CalPERS) reported a preliminary 18.4 percent return on investments for the 12 months that ended June 30, 2014. CalPERS assets at the end of the fiscal year stood at more than $300bn. Alternative strategies including absolute return products, private equity and real estate helped to bolster fund returns.

The gain marks the fourth double-digit return the pension fund has earned in the last five years. Investments in domestic and international stocks returned 24.8%, outperforming the CalPERS custom public equity benchmark by 0.5%. Investments in income-generating real assets like office, industrial, and retail assets returned 13.4% outperforming the Pension Fund's benchmark by 1.6% points.

CalPERS 18.4% return is well above the Fund's discount rate of 7.5%, the long-term return required to meet current and future obligations. CalPERS 20-year investment return is 8.5%, while its return since 1988 is 8.9%.

Private equity investments posted returns of 20.0%. Absolute return strategies posted returns of 7.1%, adding to the overall performance of the broader portfolio. CalPERS has been working through alterations to its allocations to alternative strategies. Allocations to the credit side of hedge fund strategies are likely to increase, while target allocations for private equity have gone down as the pension faces difficulty finding investment opportunities in that sec......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Star names struggle as smaller hedge funds make hay[more]

    From eFinancialnews.com: Many big-name funds have been hit by sharp reversals in markets, including US government bonds and UK stocks, and have struggled to extricate themselves from positions that have gone bad. According to data group eVestment, hedge funds below $250 million in size are up 4.1% t

  2. North America - Acela fight splits hedge fund Connecticut and old money enclaves[more]

    From Bloomberg.com: Connecticut’s residential coastline is two worlds, the one of newcomer millionaires and one whose wealth and New England roots span generations. Now, their differences over a rail route threaten to gum up plans for the U.S. Northeast’s fastest-ever trains. About 30 miles from Man

  3. Activist News - Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership, Activist investors double chance of CEO exits[more]

    Caesars offers creditors another $1.6bn, would spell end of hedge fund ownership From Calvinayre.com: Casino operator Caesars Entertainment has improved its offer to junior creditors to over $5b, but the offer is only good until Friday. On Wednesday, Caesars added an extra $1.6b to the $

  4. Comment - ‘Gut feeling’ measurable in hedge fund traders, How hedge fund managers can use blockchain to maximize benefits[more]

    ‘Gut feeling’ measurable in hedge fund traders From Laboratoryequipment.com: “Gut feeling” is an intangible – an automatic hunch – based on prior experience for some people. But the “gut feeling” is actually a measurable response developed in professionals doing some high-risk work, acco

  5. Opalesque Exclusive: Modern investor tools (2): A platform that does the job for you[more]

    Benedicte Gravrand, Opalesque Geneva: A new series on technology providers that assist asset allocators. There is disruption in the investor part of the world of hedge funds, coming from platforms that can replace traditionally-run search and analysis. Here is one of them. L