CalPERS reported a 20.7 percent return on investments in preliminary estimates for the one-year period that ended June 30, 2011. This is the Pension Fund’s best annual performance in 14 years, and the second straight fiscal year that the 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.
“The portfolio is quite healthy with positive benchmark-beating gains for nearly all of our asset classes over the past year,” said Chief Investment Officer Joseph Dear. “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.”
The 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.
“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.”
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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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