Investments

Myths vs. Facts

Fact:
CalPERS is like many investors who have experienced investment declines as a result of the systemic market downturn. The volatile markets are contributing to challenges in real estate investments for large and small investors, and the economic downturn continues to impact the real estate sector.

Fact:
Vacancy rates are increasing in the commercial real estate sector and the downturn in the markets had an impact on housing values, causing a significant price correction.

Fact:
We are positioning our real estate portfolio for long-term growth and focusing on income-producing properties that provide stable cash flows. We have a responsibility not to invest additional dollars in underperforming assets and we will replace underperforming assets, with an eye toward the right investments to sustain the portfolio for the long term.