Real Estate, Fixed Income Help California, Virginia Funds
The $156 billion California Public Employees’ Retirement System (CalPERS) noted that its real estate investments gained 14.4% for the year ended June 30, 2001, while domestic fixed income assets rose 12.6%.
The System’s private equity investments posted an 11.0% loss, below its hurdle rate but well in line with the private equity market, according to CalPERS.
CalPERS’ international bond portfolio posted a 7.3% loss, while the international stock holdings fell 20.1%. CalPERS US stocks declined by 13.9%.
The System has earned a 5% annualized return for the 3-year period ended June 30, 2001, and 10.7% annualized return for the 5-year period.
Public equities represent approximately 59% of CalPERS assets. Fixed income represents 28% of the system’s assets; real estate, 8%; and private equity represents 5% of assets.
Real Returns For Virginia
For the first time since 1984, the Virginia Retirement System (VRS) reported a negative fiscal year return-on-investment, -7.4%. Real estate and fixed income also helped offset equity losses for the fund, which fell by $3 billion to $37.6 billion.
Real estate returned 14.1% for the nation’s 29 th largest pension fund, while fixed income gained 11.7%. Those gains helped offset the losses of 12.2% and 25.2% in US and non-US equities, respectively.
The fund’s private equity portfolio lost 15.2% during the period.
At the fiscal year-end, the portfolio had:
- $18.1 billion invested in US equities
- $5.5 billion in non-US equities
- $9.2 billion in fixed income
- $1.7 billion in real estate
- $2.5 billion in private equity
VRS provides benefits to 102,000 retirees and covers 304,000 active members.
– Nevin Adams email@example.com
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