CalPERS earned a net return of 21.3% for its fiscal year ended June 30, CEO Marcie Frost said Monday, in revealing preliminary investment results at the $473.4 billion pension fund’s off-site meeting.
The pension fund underperformed its benchmark return of 21.7%, CalPERS reported.
“While we are very pleased with these earnings and the performance of the portfolio, it’s also important to note that we never lose sight of the fact that we are long-term investors,” Ms. Frost said.
The California Public Employees’ Retirement System, Sacramento, earned an annualized net 10.3% for the five-year period, 8.5% in the 10-year period and 6.9% over 20 years.
CalPERS’ best-performing asset class in the one-year period was private equity, with a net 43.8% return as of March 31; followed by equities, with a net return of 36.3% as of June 30; and real assets, 2.6% as of March 31. The pension fund’s liquidity portfolio earned 0.1% and fixed income, -0.1%.
Private equity and real asset returns lag by one quarter.