Calpers misses returns target amid PE outperformance

The $373bn US pension fund has generated 6.7% net return from its entire portfolio for this fiscal year, slightly down from the 7% actuarial target, following a volatile year for the financial markets.

This year's performance is lower than the 8.6% reported in 2018 and 11.2% for 2017.

Private equity delivered the second strongest results this year, returning 7.7%, although it was the top performing asset class the year before.

Other asset classes boosting this year's performance include fixed income, which delivered 9.6%, and public equity, which returned 6.1%.

This year's results come as the US pension fund is restructuring its private equity programme; it has decided to commit to late-stage venture and growth capital investments, as well as in long-term investments in core economy companies.

The pension fund is set to conduct interviews imminently with the finalists of a tender notice searching for a private equity investment board consultant and a general pension board consultant. The new contract is expected to start in July 2020. The pension fund currently employs Meketa Investment Group and Wilshire Associates Incorporated for its private equity and general pension portfolios respectively.

Calpers has also recently bolstered its private equity team, by adding a new managing investment director. Greg Ruiz has joined the organisation from Altamont Capital Partners and he will lead the private equity programme. He replaces Sarah Corr, who served as interim managing investment director for private equity since the departure of Real Desrochers in 2017.

Chief investment officer Ted Iliopoulos recently left the pension fund and has been replaced by Yu Ben Meng.

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• CalPERS
• United States