Money & Company
Tracking the market and economic trends that shape your finances.
November 9, 2010 | 3:14 pm

The California Public Employees’ Retirement System, the country’s biggest government pension fund, closed out its 2009-10 fiscal year, reporting a net return on investments of 13.3%

The results for the 12 months ending June 30 represented a significant improvement from the 23.4% loss in the previous year during the worst recession since the Great Depression of the 1930s.

CalPERS ended the most recent fiscal year with a total portfolio worth $200.5 billion, substantially down from a record high of $260.4 billion on Oct. 31, 2007.

“This updated report indicates a gain of more than $40 billion since our turn-around from the lowest point of the recession in March 2009,” said Chief Investment Officer Joseph Dear. “We also beat our benchmark of 12.95% and eclipsed return targets for every asset class except real estate. But even that asset class improved dramatically over what we reported in July.”

CalPERS’ reported significant gains in a number of areas: global fixed equity including bonds rose 20.4%; private equity 23.9%; publicly traded stocks up 14.4% and commodities, infrastructure, forestland and inflation-linked bonds up 8.7%.

Calperslogo Real estate investments dropped by 10.8% but did much better than an earlier estimate of minus 37.1%.

“These financial figures are good news for employers since investment gains will help mitigate increases in their contribution rates,” said Dear.

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