Chief Investment Officer Joe Dear said in an interview on CNBC’s “Squawk Box” morning show Tuesday, August 9th, that CalPERS had on-paper losses of about $18 billion between the fiscal year ending June 30th and at the end of the day on Monday, August 8th. Total assets were $220 billion, compared with almost $238 billion at the end of June, when CalPERS reported a 20.7 percent annual return on investment. Dear attributed the stock market decline to weak political leadership in Europe and in the U.S. that he said has undermined investor confidence. He says investors must wait for political leaders to respond to the challenges of sovereign debt in Greece, Italy and other countries and to U.S. debt that led to a credit downgrade for Treasuries. However, Dear said CalPERS has almost $10 billion in cash and other liquidity for new buying opportunities. He stressed that investors need to keep their long-range perspective to take advantage of opportunities – even in a volatile market.
Watch the CNBC video.
CalPERS is working hard to ensure the retirement and health security of our members, provide help to our employers, and manage our investments to meet our long-term liabilities. We hope this information provides education, insight, and clarity.
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