Tags: calpers | pension

Calpers Portfolio Falls Short of Performance Target

Tuesday, 08 May 2012 08:02 PM

 

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink

The California Public Employees’ Retirement System, the largest U.S. pension, earned less than 2 percent on investments in the first three quarters of its fiscal year, below its target rate after its stock portfolio faltered.

The fund, with $233.6 billion in assets, returned 1.9 percent in the nine months ending March 31, according to a performance summary posted on its website Tuesday. The fund’s stock holdings, which make up half of its assets, lost 1.6 percent during that period. Fixed-income earnings grew 8.4 percent. Calpers, as the system is known, also lost 11 percent in its $2.1 billion forestland portfolio.

Calpers’s governing board in March lowered its forecast for investment returns to 7.5 percent from 7.75 percent. The rate is used to calculate how much the plan will need to cover promised benefits, and what employers such as the state and local governments must contribute.

“It’s important not to judge our performance quarter by quarter but to look at our long-term track record which has outperformed our expected returns,” Calpers Chief Investment Officer Joe Dear said in a e-mailed statement. “Calpers by its nature is a long-term investor and we believe that will drive the health of the fund, not short-term market cycles.”

Through March 31, Calpers earned 13.5 percent over three years and 5.7 percent over 10 years. It earned 20.7 percent in the fiscal year that ended June 30, its best result in 14 years, led by stocks and private equity gains.

California’s state pensions in 2010 had 80.7 percent of what is needed to pay promised benefits, down from 86.6 percent in the preceding year, according to an annual study by Bloomberg Rankings. The median for all states was 74.6 percent, the data show.

© Copyright 2014 Bloomberg News. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Hedge Fund Manager Kass: Fed Won't Raise Rates Until At Least 2016

Sunday, 19 Oct 2014 22:23 PM

Until recently, most financial experts expected the Federal Reserve would begin raising interest rates around mid-2015. . . .

WSJ's Zweig: Do Your Homework Before Buying Structured Notes

Sunday, 19 Oct 2014 22:07 PM

Structured notes have come into vogue, as they always do when there's turmoil in the stock market, explains Wall Street  . . .

With Stocks, Bonds at Lofty Levels, Future Returns May Lag

Sunday, 19 Oct 2014 21:55 PM

While many investors are caught up with the recent volatility in financial markets and the 10 percent correction of the  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved