Tuesday, 2 June 2015
Last updated 8 hours ago
Jul 23 2007 | 4:16pm ET
The California Public Employees’ Retirement System posted its biggest return in a decade in the 12 months ended June 30, helped in part by its successful private equity investments.
CalPERS, the nation’s largest public pension fund, earned a 19.1% return on investment over the past year, more than double its expected rate of return. It now manages some $247.7 billion.
The pension’s Alternative Investment Management program—its private equity and venture capital arm—returned 23.3% in the 12 month ended May 31, trouncing its 15.6% benchmark. According to CalPERS, it now invests 6.2% of its assets in private equity.
Hedge funds, while also topping their benchmark, were not quite as impressive. CalPERS’ absolute return strategies rose 16.9%, a return dwarfed not only by p.e., but also its global equity portfolio (23.7% return), real estate (20.2%) and corporate governance funds (24%).
“Almost all of our asset classes returned over 20%, and we beat our benchmarks on all our major asset classes,” Russell Read, chief investment officer, said. “Our strategic asset allocation made us well-positioned to take advantage of strong capital markets performance, domestically and international.”
This is the fourth straight double-digit year for CalPERS, bring its 10-year average to 9.1%.
May 27 2015 | 2:15pm ET
Support Hedge Funds Care, also known as Help For Children (HFC), by participating in this year's raffle. All proceeds go to support HFC's mission of preventing and treating child abuse. Read more…