Calif. pension fund up 22.3 percent year-over-year
By CATHY BUSSEWITZ, Associated Press Writer
Wednesday, March 17, 2010
(03-17) 18:08 PDT Sacramento, Calif. (AP) --
The chief investment officer of California's giant pension fund said
Wednesday the fund grew 22.3 percent in the past year due to rebounding
markets.
The growth came after the fund previously lost nearly a third of its value in
the economic downturn.
With about $200 billion in investments, the California Public Employees
Retirement System is the nation's largest public pension fund. The plan
serves 1.6 million active and retired public employees.
CIO Joseph Dear told the CalPERS board that global equity holdings grew by
58 percent and fixed income assets grew by 25 percent in the past year.
The fund's previous losses were due to plummeting values in stocks and real
estate investments.
Dear said while economic conditions are still fragile, fund managers no
longer worry about a financial Armageddon.
"The markets are indisputably better a year on," Dear told the board.
"Confidence is strengthening, and that is an enormously positive
development."
Dear said CalPERS staff members are considering major restructuring of real
estate, alternative investments and global equities investments.
Still, CalPERS spokesman Brad Pacheco said the board plans to consider
lowering the fund's expected rate of return.
That target annual growth rate has been set at 7.75 percent since 2003. A
change to that rate could impact employer contributions. In the next few
months, the board will review whether that rate still reflects market conditions.
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February, 2010