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B. G., Opalesque Geneva:

The California Public Employees' Pension Retirement System (CalPERS), the largest pension fund in the U.S., has just announced a preliminary return of -6.1% net return on investments for the 12-month period that ended June 30, 2022, with assets of $440bn. This is the System's first investment loss since 2009, as it blames volatile global financial markets, geopolitical instability, domestic interest rate hikes, and inflation.

Public market investments make up roughly 79% of the CalPERS' total fund. Investments in global public stocks returned -13%, while fixed income investments returned -14.5%.

Private market investments fared much better, with private equity and real assets sectors returning 21.3% and 24%, respectively. This may lead the fund to further increase its exposure to private markets in the future.

"This is a unique moment in the financial markets, and we've seen a deviation from some investing fundamentals," said CalPERS' CIO Nicole Musicco. "For instance, our traditional diversification strategies were less effective than expected, as we saw both public equity and fixed income assets fall in tandem. But despite a challenging year, we were able to outperform our total fund benchmark by 90 basis points and......................

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