Fri, May 27, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

CalPERS reports 20.7% investment return for fiscal year

Monday, July 18, 2011

Rob Feckner
The California Public Employees Retirement System (CalPERS) reported a 20.7 percent return on investments in preliminary estimates for the one-year period that ended June 30, 2011.

This is our best annual performance in 14 years, said Rob Feckner, CalPERS Board President. For the second straight fiscal year, the Pension Fund exceeded its long-term annualized earnings target of 7.75 percent.

The net-of-fees performance was the strongest since the 20.1 percent return of 1997 and the highest since the 2007-09 recession.

This is a great one-year achievement that powerfully affirms our strategy and the skills of our investment team, said Chief Investment Officer Joseph Dear. While we cant assume that well sustain this high level of earnings, we have averaged a net return on investments of 8.4 percent for 20 years.

These strong returns are a testament to our commitment to our long-term investing principles, said Anne Stausboll, CalPERS Chief Executive Officer. Our members, employers and California taxpayers all benefit from our disciplined approach to investing.

As of June 30, 2011, the market value of CalPERS assets stood at approximately $237.5 billion. A year earlier, the fiscal year ended with $200.5 billion. Investment returns are based on compounded daily earnings over the year, including continuing member contributions and benefit payments, and dont precisely correspond to one-year changes in market value.

The portfolio is quite healthy with positive benchmark-beating gains for nearly all of our asset classes over the past year, Dear said. Global equity (public stocks), private equity, fixed income, inflation-linked and cash equivalents all did well, and our real estate portfolio is back in positive territory after reversals during the financial crisis and recession.

Todays announcement includes asset performance gains as follows: global fixed income, 7.0 percent; private equity, 25.3 percent; public stocks, 30.2 percent; commodities, infrastructure, forestland and inflation-linked bonds, a combined 13.6 percent; and real estate, 10.2 percent.

Returns for real estate, private equity and some components of the inflation-linked class reflect market values through March 31, 2011 (not June 30, 2011). Final performance including the last quarter of the fiscal year will be available after asset valuations are completed.*

Despite the good news, were well aware of continuing uncertainties in the global financial markets, said George Diehr, Chair of CalPERS Investment Committee. Accordingly, our strategy is accounting for such factors as high unemployment, the depressed housing market, and financial turmoil in Greece and other debt-plagued countries. Were moving forward with our risk-focused asset allocation strategy and developing new tools to respond to market conditions.

CalPERS is the nations largest public pension fund, administering retirement benefits for 1.6 million active and retired State, public school, and local public agency employees and their families and health benefits for 1.3 million members. The average CalPERS pension is $2,220 per month. For more information about CalPERS, visit www.calpers.ca.gov.

(press release)

Source

kb

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
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. Paul Tudors hedge fund trims fee amidst poor performance, keep investors[more]

    Komfie Manalo, Opalesque Asia: Paul Tudors $11.6bn hedge fund firm Tudor Investment Corp. announced on Monday it would slash down fees of one of its biggest fund to 2.25% of assets and 25% of profits amidst backlash arising from poor performa

  2. Ares Capital to buy American Capital in $3.4 billion deal[more]

    From PIOnline.com: Ares Management's business development company Ares Capital Corp. is buying troubled BDC American Capital for $3.43 billion, said a joint news release by the BDCs and another release by Ares Management. Ares Capital Corp.'s assets are expected to grow to about $13.2 billion when t

  3. Performance - Hedge fund ETFs take a battering, Have long-short credit funds delivered?[more]

    Hedge fund ETFs take a battering From ETFStrategy.co.uk: It was a blow for the hedge fund world when Hillary Clintons son-in-law Marc Mezvinsky announced he would be closing his Greek-focused fund after it plummeted in value by 90%, just two years after it launched. For passive investor

  4. Launches - Man Group and American Beacon launch new emerging debt fund, Nikko AM launches new Japan equity UCITS fund[more]

    Man Group and American Beacon launch new emerging debt fund American Beacon Advisors, an experienced provider of investment advisory services to institutional and retail markets, launched the American Beacon GLG Total Return Fund today. The Fund became effective May 20. The America

  5. Emerging markets hedge funds perform strongly, but capital base erodes[more]

    Komfie Manalo, Opalesque Asia: Latin American Emerging Markets and Russian hedge funds lead industry gains in the first months of 2016, posting strong performances through April as global and EM equity, commodity and currency markets surged in recent weeks following steep losses to begin the year