Our pension fund serves more than 2 million members in the CalPERS retirement system and administers benefits for more than 1.5 million members and their families in our health program, making us the largest defined-benefit public pension in the U.S. CalPERS' total fund market value currently stands at approximately $397 billion. Over the past 20 years, average investment returns … Returns for real assets and private equity reflect market values through March 31, 2020. Insights from CalPERS Investment Office Video Length: 03:55. We have a fiduciary duty to minimize risk in our portfolio and take advantage of opportunities on behalf of our 1.9 million members. ** This estimate is based on a 7% discount rate. Calpers investments have swung dramatically over the last 20 years Source: California Public Employees' Retirement System Calpers had about 70% … . During the process, the CalPERS board reviews its overall risks, taking into consideration the long-term sustainability of the system. CalPERS assets at the end of the fiscal year stood at more than $389 billion. Despite significant market volatility which included assets under management declining by an estimated $70 billion in late February and March, the CalPERS Public Employee Retirement Fund (PERF) was able to recover nearly all of that value by the end of June. Copyright 2021 California Public Employees' Retirement System (CalPERS) | State of California, Investment Committee, John Cole | November 13, 2018, Learn About Asset Liability Management (ALM), Subscribe to Manager Solicitations & News, CalPERS Names Anne Simpson Managing Investment Director of Board Governance and Sustainability, CalPERS Names James Sterling Gunn To Lead Trust Level Portfolio Management Program, CalPERS Names Yup Kim Private Equity Investment Director. CalPERS earned a net return of 12.4% for the year, 8.4% for the three years, 9.7% for the five years and 8.4% for the 10 years years ended Dec. 31, CEO Marcie Frost said … For more than eight decades, CalPERS has built retirement and health security for state, school, and public agency members who invest their lifework in public service. CalPERS' 2019-20 final fiscal year investment performance will be calculated based on audited figures and will be reflected in contribution levels for the State of California and school districts in fiscal year 2021-22, and for contracting cities, counties, and … The program currently invests in three ways: Direct and co-investments with existing CalPERS general partners. Finally, we will fulfill this plan through a total fund approach, which means each asset class, such as fixed income or public stocks, works together to achieve the 7% return target. Its target averaged 7.7 percent over the 18 years. Net IRR is the Net Internal Rate of Return based on CalPERS’ actual cash flows and the … The CalPERS investment portfolio is currently valued at more than $390 billion. Despite its quest for the elusive 7 percent annual return, CalPERS nonetheless foregoes investments in Iran, Sudan, assault rifles, tobacco products, and thermal coal. Communications & Stakeholder Relations Contributions made to CalPERS from employers and employees, monthly payments made to retirees, and the performance of its investments, among other factors, all influence the ending total value of the PERF. The money made on return in the money markets is the accrued amount from decades of employee contributions compounded at the rate of return each year. I’m proud that our strategy enabled us to navigate volatile markets and end the fiscal year on a strong note. CalPERS' Private Equity Program specializes in private equity investments. CalPERS’s investment results were even more off the mark, Mr. Winkelmann found. Overall, the equity asset class has a 6.1% return in the fiscal year ended June 30. Copyright 2021 California Public Employees' Retirement System (CalPERS) | State of California, Total Fund and Benchmark Performance Calculation – Wilshire Associates (PDF), CalPERS Reports Preliminary 4.7% Investment Return for Fiscal Year 2019-20. SACRAMENTO, Calif. – CalPERS today reported a preliminary 6.7 percent net return on investments for the 12-month period that ended June 30, 2019. Pension funds across the U.S. are striving to cut costs, improve returns and shore up their long-term funding status. The preliminary 4.7% return topped the fiscal year total fund benchmark of 4.33%.*. In the fiscal year that ended June 30, CalPERS returned only 4.7%, but the portfolio performed better than its benchmark, which returned 4.3%. 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