CalPERS says investments returned 11.2 percent

July 14, 2017 8:27am

•  Best showing for pension fund in three years

•  “Our globally diversified portfolio performed well across most asset classes”

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The nation’s largest pension fund, the California Public Employees' Retirement System, says Friday that for the 2016-2017 fiscal year, its investments showed a return of 11.2 percent.

It’s the best CalPERS has done in three years.

CalPERS assets at the end of the fiscal year on June 30 stood at more than $323 billion, it says.

The strongest returns came from the public equity program, which generated a 19.7 percent return. Private equity's preliminary net returns were 13.9 percent, followed by real estate, with preliminary net returns of 7.6 percent.

Based on these preliminary fiscal year returns, the funded status of the overall CalPERS fund is an estimated 68 percent, an increase of 3 percentage points from the previous fiscal year. This estimate is based on a 7 percent discount rate.

"I am proud of our investment team for achieving double digit returns this year," says Ted Eliopoulos, CalPERS chief investment officer. "Our globally diversified portfolio performed well across most asset classes, and we were able to take advantage of what the market gave us. However, I want to emphasize that as pleased as we are with this one-year return, our focus is always on the long-term. We invest for decades, not years."

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