The California Public Employees’ Retirement System (CalPERS) reported a 12.5% return in its latest fiscal year due to strong results from its equity and real estate investments.
Investments in domestic and international stocks returned 19%, while its private equity portfolio returned 13.6% and its real estate investments rose by 11.2%.
Returns for real estate and private equity assets reflect market values for the nine months through March 31, 2013. Final performance, including the last quarter of the fiscal year, will be available after asset valuations are completed.
The overall 12.5% return is well above the fund’s discount rate of 7.5%, the long-term return required to meet current and future obligations.
“CalPERS is a long-term investor, and we try not to focus too much on one year of performance,” says Henry Jones, chair of the CalPERS investment committee. “But obviously, 12.5% is a great number, and we’re pleased with the performance.
CalPERS’ 20-year investment return is 7.6%, and its 25-year return is 8.5%.
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