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CalPERS has released its preliminary financial performance results for Fiscal Year 2021-2022, showing a Net Investment Return of -6.1 percent. As of the end of the fiscal year, CalPERS’ assets were valued at approximately $440 billion.

The results were driven by recent, widely-publicized, market volatility, inflation, and global instability. However, CalPERS’ diversification helped to cushion losses in publicly traded equities.  According to CalPERS’ press release discussing the preliminary results:

CalPERS’ investments in global public stocks returned -13.1%, while fixed income investments returned -14.5%. Public market investments make up roughly 79% of the CalPERS’ total fund. CalPERS’ private market investments fared much better, with private equity and real assets sectors returning 21.3% and 24.1%, respectively.

Despite its negative return for the year, CalPERS outperformed its benchmarks:

CalPERS maintains positive returns over 5, 10, 20, and 30-year periods (6.7 percent, 7.7 percent, 6.9 percent, and 7.7 percent, respectively). CalPERS’ funded status is approximately 72 percent.

The results released by CalPERS are preliminary, and will be revised based on audited figures, which will determine the impact of 2021-2022 performance on special districts’ employer contribution rates beginning in fiscal year 2024-2025:

Pleased stay tuned to CSDA eNews and Advocacy News for additional updates on final 2021-2022 investment performance and contribution rate impacts.