CalPERS Returns 13%, Alt Investments Mixed

Date: Thursday, November 11, 2010
Author: Marc Raybin, HedgeFund.net

The California Public Employees’ Retirement System (CalPERS) released its returns for fiscal year 2009-2010 and things are looking up for the United States’ largest public pension plan.

For the year ended on June 30, CalPERS had a net return of 13.3%, valuing the plan at $200.5 billion in assets. That number has climbed in the last few months, with the plan’s value at $221.5 billion as of Nov. 8, according to its Web site.

CalPERS continues to rebound from the recession, gaining $40 billion since March 2009, according to a statement. The plan said it had saved nearly $300 million in fee reductions external managers and the elimination of poor performing funds.

The pension’s 13.3% return bested its preliminary returns published in July by nearly two percentage points.

For fiscal 2009-2010, CalPERS’ performed strongly in nearly all asset classes except real estate and hedge funds.

Private equity performed well for the year, finishing up 23.88%; hedge funds, not so well, down 0.8%.

CalPERS’ hedge fund efforts are part of the pension’s Risk Managed Absolute Return Strategies program, which had $5.5 billion in assets under management as of June 30.

As of Nov. 8, the pension’s private equity investments totaled $30.5 billion, according to CalPERS’ latest figures on its Web site.

Other sectors included global fixed income up 20.35%, public stocks up 14.42%, commodities, infrastructure, forestland and bonds up a combined 8.70%. Real estate was down 10.76%.