Asset Allocation & Performance
The starting point for, and most important element of, CalPERS successful return on investment is asset allocation - our diversification among stocks, bonds, cash, and other investments.
Asset allocation is not an asset- or liability-only decision. All factors, including liabilities, benefit payments, operating expenses, and employer and member contributions are taken into account in determining the appropriate asset allocation mix. Our goal is to maximize returns at a prudent level of risk, an ever-changing balancing act between market volatility and long-term goals.
We follow a strategic asset allocation policy that identifies the percentage of funds to be invested in each asset class. Policy targets are typically implemented over a period of several years on market declines and through dollar cost averaging.
For more information, see the Board meeting agenda items for Strategic Asset Allocation Alternatives (PDF) and Asset Liability Management Including Actuarial Assumptions and Strategic Asset Allocation (PDF).
|Asset Class||Current Allocation (%)||Interim Strategic Target (%)1||Actual Investment ($Billions)|
|Global Fixed Income||18.1%||19.0%||$53.6|
1 These are Interim strategic targets adopted by the Investment Committee at the May 2014 Investment Committee meeting.
2 Other includes absolute return strategy; multi-asset class; and overlay, transition, and plan level.
3 Figures are rounded for viewing purposes.
Portfolio & Performance
Our investment portfolio is diversified into several asset classes. In the long run, a well-diversified portfolio determines our long-term performance, protects the Retirement Fund, and ensures any weaknesses in one area are offset by gains in another.
CalPERS Public Employees' Retirement Fund (PERF) earned a time-weighted rate of return of 18.4 percent in Fiscal Year 2013-14, with the market value at $301.1 billion. Strong returns in global equity markets and real assets continue to bolster our performance.
Find more information on CalPERS investments in our reports and agenda items.
- CalPERS monthly investment performance is reported to the CalPERS Investment Committee at Board Meetings. The February and August Investment Committee agendas provide the CIO Performance Report as Attachment 1 under CalPERS Trust Level Review.
- The 2013-14 Annual Investment Report contains detailed information about CalPERS investments.
- The 2013-14 Comprehensive Annual Financial Report contains detailed summaries of CalPERS financial status.
- The CalPERS Private Equity Fund Performance is published every quarter with a 2-quarter delay in performance reporting.
For Fund status, see:
- Total CalPERS Fund Market Value
- CalPERS Funded Status (PDF)
- California Employer's Retiree Benefit Trust (CERBT) Fund
- 2015 Asset Liability Management Workshop (Video)
- About the Investments Office
- Board of Administration
- CalPERS Private Equity Fund Performance
- Facts at a Glance
- Investment Divisions
- Investment Proposal Submission
Forms & Publications
- 2013-14 Annual Investment Report (PDF)
- 2013-14 Comprehensive Annual Financial Report (PDF)
- CalPERS Beliefs (PDF)
- CalPERS Specific Glossary of Terms (PDF)