California’s largest public-employee pension fund saw an upturn in profits generated from its investments in the last year, officials reported Thursday, a record that offered some improvement to its long-term fiscal stability.
Leaders of the California Public Employees’ Retirement System, CalPERS, reported preliminary numbers showing an 8.6% net return on investments for the 12-month period that ended in June. That is a higher rate of return than the pension fund expects to earn over the coming decades, but not necessarily reflective of a change in its long-term challenges.
“While it’s important to note the portfolio’s performance at the 12-month mark, I can’t emphasize enough that we are long-term investors,” Ted Eliopoulos, CalPERS chief investment officer, said in a written statement. “We will pay pensions for decades, so we invest for a performance that will sustain the Fund for decades.”