July 12, 2019
CalPERS reported a preliminary 6.7% net return on investments for the 12‐month period that ended June 30, 2019. CalPERS assets at the end of the fiscal year stood at more than $370 billion.
CalPERS chief investment officer Yu (Ben) Meng says, “This was a very volatile year for financial markets, but I’m pleased with how we focused on the performance of the total fund. We saw good returns in several key areas. Our long duration fixed income portfolio contributed positively as interest rates fell.”
The state pension fund fell short of its 7% actuarial return target this fiscal year, though Meng pointed out “we are long-term investors.”
Drivers of the return included the Fixed Income program, which generated a 9.6% net return, followed by Private Equity and Public Equity net returns of 7.7% and 6.1% returns respectively.
The funded status of the overall CalPERS fund is an estimated 70%, down less than a percentage point from fiscal year 2017-18, and is based on a 7% discount rate.
This year’s return brings total fund performance to 5.8% for the five-year time period, 9.1% for the 10-year time period, and 5.8% for the 20-year time period. Over the past 30 years, the CalPERS fund has returned an average of 8.1% annually.
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