"It took 64 years to break $100 billion, but only nine years to double those assets," said Rob Feckner, President of CalPERS Board of Administration. "We're gaining momentum, year by year. And every dollar earned is a dollar saved for our 1.4 million members and their employers."
CalPERS reached its peak fund size on November 21, 2005, with a net asset value of $200.1 billion, to retain its position as the nation's largest public pension fund and high ranking among the world's top funds.
When the System began operations in 1932, its assets were valued at $800,000. On May 14, 1996, the portfolio value topped $100 billion. During that time span, CalPERS expanded its universe of investments from U.S. Government and municipal bonds to real estate mortgages through FHA-VA loan purchases, then in equity securities and stocks – in 1967.
About 80 percent of current assets are generated by investment returns, while the remainder comes from employers and employees. Excluding investment earnings, employer contributions account for about 64 percent of other CalPERS assets, while employees provide about 36 percent.
"Our impressive growth reflects the Board's diversified investment strategy, the staff's nimble response to market developments, and the trust that State and public agency employees and employers have placed in us," said Charles P. Valdes, CalPERS Investment Committee Chair. "While our investments are secure and our pension obligations well-funded, we will need continued vigilance to keep growing as increasing numbers of people retire in the coming decades."
CalPERS currently disburses $8.4 billion in retirement benefits annually. Disbursements are expected to soar to $34 billion by the year 2024, when increasing numbers of present day active employees retire in the coming decades.
The System earned a 12.7 percent return on investments for the 12-month period that ended June 30, 2005, compared with 16.7 percent in the previous fiscal year. Approximately 66 percent of CalPERS assets are allocated to equities – U.S. stocks, international stocks, and private equity investments. About 26 percent of assets are in fixed income (bond) instruments, and 8 percent is invested in real estate.
CalPERS provides retirement and health benefits to 1.4 million active State and public agency employees, retirees, and their families. For more information on CalPERS, visit www.calpers.ca.gov.