California pension fund reports first loss since Great Recession

The state pension fund says the California Public Retirement System reported a loss of more than 6% last fiscal year, the first negative return on investment since the Great Recession, the state’s pension fund for the first time since the Great Recession. know.

At the end of fiscal year 2021-22, ending June 30, the fund stood at $440 billion, losing nearly $30 billion from the previous year, when CalPERS reported a 21.3% positive return to lift the total amount of the fund to 469 billion dollars. .

“Tough global markets played a role in CalPERS’s first loss since the global financial crisis of 2009.

CalPERS, which provides retirement benefits to more than 2 million members with the largest public pension fund in the US, reported investments in stocks that fell 13.1% in value. Fixed-income investments, such as bonds, fell 14.5%. These “public market investments” make up nearly 80% of the fund.

However, CalPERS’s real estate and private equity investments were up more than 20% each, even though those numbers were as of March 31.

“Our traditional diversification strategies underperformed expectations, as we saw both public equity and fixed income assets decline in tandem,” said CalPERS Chief Investment Officer Nicole Musicco. said in the statement.

Due to the overall loss, the fund ended the financial year with 72% of the funds needed to meet all of its financial obligations.

Following the banner of the fiscal year 2020-21, the system was 82% funded.

The loss comes as CalPERS is looking to stabilize itself, two years after his predecessor Ben Meng abruptly resigned.

https://www.latimes.com/business/story/2022-07-20/calpers-reports-first-loss-for-pension-fund-since-great-recession California pension fund reports first loss since Great Recession

Edmund DeMarche

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