California Treasurer Philip Angelides today said he would call on CalPERS and CalSTRS to invest at least $5 billion in California community reinvestment and growth projects — the same amount the two public pension funds now invest in emerging markets.
Mr. Angelides said returns in emerging markets have been ‘‘uneven at best.’’ The $168 billion CalPERS experienced annualized returns of -29% in Indonesia, -24% in Malaysia and -25% in the Philippines for the three-year period ended Dec. 31, he added.
A forthcoming report from the treasurer’s office called ‘‘The Double Bottom Line’’ will call on state pension and investment funds to spur economic growth and development in California communities, Mr. Angelides said.
In addition, Mr. Angelides said, public pension funds ‘‘must broaden their pool of investment managers to capitalize on California emerging market opportunities,’’ saying CalPERS and CalSTRS must start new manager programs focusing on community reinvestment. ‘‘There is a large and growing pool of talented ethnic and minority managers who have roots in and knowledge of underserved markets,’’ he said.
