Investment performance at CalPERS declined 23.4% for the fiscal year ended June 30, its greatest single-year decline ever, while CalSTRS' investment portfolio dropped 25% for the year, the funds reported today,
The California Public Employees' Retirement System, Sacramento, reported $180.9 billion in assets as of June 30, down from $237.1 billion a year earlier, according to a news release. The California State Teachers' Retirement System, West Sacramento, reported assets of $118.8 billion as of June 30 vs. $162.2 billion a year ago, a separate release indicated.
CalPERS' assets fell as low as $160 billion in March before rebounding.
At CalPERS, public equities returns were down 28.5% as of June 30 while inflation-linked assets fell 20.9%. Cash was up 1.4% and global fixed income climbed 0.6%. As of March 31, real estate returns tumbled 35.8%, while private equity fell 31.4%.
For CalSTRS, global equity returns fell 28.2% while fixed income was up 4.5%, according to the fund's news release. As of March 31, real estate returns were down 43% while private equity tumbled 27.6%.
Real estate and private equity returns for both funds are subject to change pending appraisals through June 30.
“This result is not a surprise; it is about what we expected given the collapse of markets across the globe,” said CalPERS CIO Joe Dear in the release.
“Our recent actions position us for the coming recovery and we have the resolve and structure in place to recoup our losses and more,” said CalSTRS CIO Christopher J. Ailman.
Executives of both funds said in their respective releases that contribution increases most likely will be needed to help cover the losses.