On Wednesday, CalPERS announced a preliminary 4.7 percent net return on investments for the 12-month period that ended on June 30, 2020. The CalPERS figure misses the annual targeted return of 7 percent, which CalPERS indicated is likely due to COVID-19’s impact on the global economy.
In light of the announcement, the CalPERS Chief Investment Officer commented “We’ve been doing the hard work of preparing for a downturn for some time. When it came, we were in a strong position to reduce its impact on our portfolio and take advantage of new opportunities created by the changing economic climate. I’m proud that our strategy enabled us to navigate volatile markets and end the fiscal year on a strong note.”
The pension fund generated a 12.5 percent return on fixed income, a 0.6 percent on public equity returns, and a 4.6 percent return on real assets, which include real estate and infrastructure. On the other hand, the fund generated a -5.1 percent loss on private equity investments.
This AALRR publication is intended for informational purposes only and should not be relied upon in reaching a conclusion in a particular area of law. Applicability of the legal principles discussed may differ substantially in individual situations. Receipt of this or any other AALRR publication does not create an attorney-client relationship. The Firm is not responsible for inadvertent errors that may occur in the publishing process.
©2020 Atkinson, Andelson, Loya, Ruud & Romo
Other AALRR Blogs
- CalPERS Health Plan Premiums Announced for 2021
- CalPERS Misses Annual Investment Target with a 4.7 Percent Net Return
- “California Rule” Survives (For Now) — But “Airtime” Does Not
- Be Cautious About “DROP” Programs
- California Supreme Court Hears Cal Fire Oral Argument
- Amortization Period for New Debt Shortened to 20 Years
- New CalPERS Compensation Limits, Effective Immediately
- CalPERS Responds to Its Critics
- Senate Bill 525 Amends California Public Pension Laws
- New Stanford University Study Predicts Public Pensions Costs in California to Consume 14-17.5% of Operating Expenses by the Year 2030