Published: 4 August 2005
CalPers (the California Public Employees’ Retirement System) returned 12.7% for the June 2005 year, its 2nd straight double-digit annual gain since the mid-90s, and the top performer in the portfolio was real estate.
The huge pension fund said real estate earned it a return of almost 38%, more than double the NCREIF 15.5% benchmark. 6% of the total portfolio is in real estate. During the year, the pension fund added $US23.5 billion, including $US2.5 billion generated by its investment staff’s taking advantage of unique market opportunities, taking total market value to a record $US189.8 billion.
Chief investment officer Mark Anson said the fund exceeded industry benchmarks in 3 out of 5 major asset classes. Its alternative investment management programme, which specialises in private equity & venture capital holdings, generated a 22.8% return compared to the 14.2% benchmark, and its investments in corporate governance funds that target ailing public companies returned 20.8%.
International stocks earned 17.3% compared to the 16.9% benchmark, and domestic stocks returned 7.5%, one point short of the benchmark.