Largest US Public Pension Fund Reports Lowest Gain Since Crisis

CalPERS reported its lowest annual gain since the financial crisis this past quarter, and stock losses are largely to blame.

The largest public pension fund in the country earned only 0.6% in investments for the fiscal year ended June 30, making it the second year in a row the fund has failed to hit its internal 7.5% investment target, the Wall Street Journal reports. That’s bad news for government workers who often have to throw in more money each month when pension funds fail to produce expected returns.

CalPERS ended its fiscal year with roughly $295B in assets, more than half of which was invested in stocks, which fell an average of 3.4%. Even real estate holdings fell short with a 7.1% return—missing the fund’s expectations by 5.6%. [WSJ]

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