CalPERS Gets Roiled by Fixed Income Portfolio and Public Equities
Posted on 07/20/2022
Many fixed income investors were hammered by central banks raising rates, thus inflicting damage on bond portfolios. California Public Employees Retirement System (CalPERS) disclosed that its investments returned -6.1% in the fiscal year ended June 30, 2022, the first annual loss since 2009. The benchmark return was -7%.
CalPERS has gone through a number of CIOs and has hired Nicole Musicco, who was at Ontario Teachers Pension Plan. The CIO hire signals CalPERS wants to again wade into private markets. CalPERS plans to lower its exposure in stocks in favor for private equity, real estate and infrastructure portfolios with more co-investments.
In fixed income, CalPERS is a major holder of U.S. Treasuries among other bonds such as agency bonds and corporate bonds.
CalPERS Investment Performance
| Fiscal Year – June 30 | Annual Net Return | Fixed Income | Listed Equities | Private Equity | Liquidity Assets | Real Assets |
|---|---|---|---|---|---|---|
| Jun-22 | -6.10% | -14.50% | -13.10% | 21.30% | 0.30% | 24.10% |
| Jun-21 | 21.30% | -0.10% | 36.30% | 43.80% | 0.10% | 2.60% |
| Jun-20 | 4.70% | 12.50% | 0.60% | -5.10% | 1.60% | 4.60% |
