Sat, Jan 21, 2017
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

CalPERS sees strong investment gains in 2009

Friday, January 22, 2010
Opalesque Industry Updates – The California Public Employees’ Retirement System (CalPERS) said today that it earned an 11.80 percent return on investments for the 2009 calendar year.

Since March 2009, when global financial markets plunged amid a historic worldwide economic recession, the CalPERS market value of assets has come back by more than $46 billion. Total fund assets closed 2009 at $203.3 billion. Today they stand at more than $206 billion, up more than $3 billion in just the first three weeks of the new year.

“Last year was a wild ride for all investors, but we finished very strong,” said Joe Dear, CalPERS Chief Investment Officer. “We sharpened our investment focus, looking at our portfolio from top to bottom. Now we’re in a strong position to take full advantage of any financial upturn in 2010.”

CalPERS 20-year investment return remains steady at 7.75 percent – the assumed rate of return necessary to pay future member pension benefits.

The pension fund’s Global Equity portfolio was the biggest gainer among asset classes in 2009, with a 35 percent overall return. Driving the increase: A more than 43 percent gain from investments in international stocks, including emerging markets. Returns on investments in domestic equities increased nearly 28 percent.

Other CalPERS asset classes also saw strong returns last year:
* Global Fixed Income, up 14 percent.
* Inflation Linked Asset Class, which includes infrastructure, commodities, inflation-linked bonds and forestland, up almost 5 percent. Returns on infrastructure are as of September 31, 2009.

Two asset classes – real estate and private equity – suffered losses through the first nine months of 2009. Private equity was down 6 percent. Real estate fell 47 percent. The reported returns for each lag the year-ending results by one quarter.

“We took some very tough medicine in real estate last year,” said Dear. “But our team is making sure we apply the lessons we learned. We’re aggressively examining our portfolio and getting rid of the investments that don’t meet our expectations. We believe there will be some real opportunities to invest in income-generating properties at good discounts. I’m very excited about our potential and the moves we can make,” he added.

CalPERS also is realigning its relationships with its private equity partners, cutting fees and evaluating managers it will continue to do business with.

For information on CalPERS history of investments, go to Facts at a Glance-Investments in the press room at www.calpers.ca.gov.

CalPERS is the nation’s largest public pension fund with about $206 billion in market assets. The pension fund provides retirement benefits to more than 1.6 million state, public school, and local public agency employees, retirees, and their families, and health benefits to nearly 1.3 million members. Full press release: Source

km

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. Investing - This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally, Hedge fund legend David Einhorn is making a big bet on GM, After impressive 85% return in 2016, hedge fund looks to Canadian gold producer, small banks[more]

    This hedge fund made 37% betting on banks in 2016 and remains bullish after the Trump rally From Forbes.com: Can bank stocks continue to rise after a 28% surge in the KBW Bank Index in 2016, fueled by a post-election rally as stock pickers returned to the beaten down sector? Forget the s

  2. SWFs - China sovereign wealth fund CIC plans more U.S. investments[more]

    From Reuters.com: China Investment Corporation (CIC), the country's sovereign wealth fund, is looking to raise alternative investments in the United States due to low returns in public markets, its chairman said on Monday. CIC will boost its investments in private equity and hedge funds as wel

  3. Some hedge funds strong start in 2017 nice contrast to 2016[more]

    With the 2016 HSBC Hedge Weekly performance rankings in the books - a year in which the same leader-board entries pretty much dominated unchallenged throughout the year - comes a new leader board that is a hard-scrabble mix of hedge fund styles and categories. What is clear after but a few short wee

  4. Macro hedge funds and CTAs outperform in December on strong dollar[more]

    Komfie Manalo, Opalesque Asia: The last month of 2016 saw risk assets climbing higher, as part of expectations that the new U.S. administration will remove barriers to growth and investment, Lyxor Asset Management said. December also saw the Fed hik

  5. Opalesque Exclusive: Roxbury credit events UCITS gathers more assets[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: The Roxbury Credit Events Fund, launched in September 2015, was up 4.24% in 2016, having returned seven positive months during the year. The managers raised