July 19, 2016
Heavy stock losses were cited as the biggest contributors to CalPERS’ lowest annual gain since the last financial crisis. The largest U.S. pension fund says it earned 0.6% on investments for the fiscal year that ended June 30th.
It was the second consecutive year CalPERS didn’t hit its internal investment target of 7.5%. CalPERS’ size and investment approach makes it a bellwether for many investors.
Real estate holdings returned 7.1%, though they failed to hit CalPERS’ internal target by more than 5.6 percentage points. More than half of its $295 billion in assets are invested with publicly traded stocks, which declined 3.4%, though that was above its internal targets.
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