We invest the largest amount of our total assets, and assets in California, in the public markets through global equities and fixed income investments.

CalPERS investments in public companies and projects cannot be directly tied to the creation of jobs or other ancillary benefits at those companies and projects receiving investment. Our public markets investments are intentionally excluded from this analysis due to the more indirect relationship between our investment of capital and the use of this capital by recipient public companies. Therefore, the CalPERS for California report examines CalPERS' investment exposure in California, but not the job creation or ancillary benefits associated with its public market investments.

Global Equity

Total Market Value: $171.8 billion

Value in CA: $17.5 billion

Percentage in CA: 10.2%

Global equity investments in public companies make up nearly half of our total assets. We invest in public companies primarily as a long-term investor. The largest allocation of global equity is passively managed by an in-house team of investment professionals. We maintain an allocation to active strategies, both internally and externally managed, to seek added value. Global equity is the principal asset class providing growth exposure in our strategic asset allocation.

Global Fixed Income8

Total Market Value: $79.1 billion

Value in CA: $5.7 billion

Percentage in CA: 7.2%

Our global fixed income strategy seeks to diversify and minimize risk in our overall investment programs and to enhance total returns. We have global fixed income investments in California in four areas:

  • Corporate bonds: Corporate bonds are debt securities issued by private and public corporations. Companies issue corporate bonds to raise money for a variety of purposes, such as building new plants or purchasing equipment.
  • Structured securities: Structured securities are investments in a diverse group of loans and provide risk and return characteristics contingent on a range of underlying indicators, interest rates, or cash flows.
  • Short-term investments: Short-term investments consist of U.S. Treasury and government sponsored securities, money market funds, commercial paper, certificates of deposit, repurchase agreements, asset backed securities, notes and bonds issued by U.S. corporations, and other allowable instruments that meet short-term maturity or average life, diversification, and credit quality restrictions.
  • Whole loans: Whole loans include remaining California mortgages through the CalPERS Member Home Loan Program.9

The following table shows our global fixed income investments in California.

CalPERS Global Fixed Income Investment Classes in California: June 30, 2018
  Dollars invested (in millions) Percentage of dollars invested
Total $5,708 100%
Corporate Bonds $1,646 28.8%
Structured Securities $3,115 54.6%
Short-term Investments $907 15.9%
Whole Loans $40 0.7%

8 The global fixed income asset class includes five distinct investment types.

9 The CalPERS Member Home Loan Program was launched in 1982 and offered a unique mortgage benefit for members, including, reduced lender fees through preferred mortgage lenders, lower closing costs through participating partners, and a down payment assistance program that allowed members to borrow against their CalPERS retirement for up to 100% of their required down payment. Our Board of Administration suspended the program in December of 2010 citing limited interest, increased risk, and a changing marketplace.

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