New CalPERS CEO Hopes Real Estate, Private Equity Will Boost Returns

The largest US pension fund is considering buying more investments in real estate and private equity to boost returns.

Marcie Frost, who was named CalPERS' next CEO this week, said she has her eye on private equity. “When you’re looking at the low rate of return environment in the public markets, I don’t think you can ignore private equity.” Frost has been executive director at the Washington State Department of Retirement Systems since 2013, and her pension system returned 4.9% last year compared to 2.4% for CalPERS, Bloomberg reports.

The fund seeks 7.5% in annual returns to meet its obligations, but this year it’s expected to earn basically nothing on investments over the 12 months through June 30. We’ll know for sure next week when official returns are published. [Bloomberg]

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