CalPERS PE returns exceeds hedge funds investments

The California Public Employees’ Retirement System (CalPERS), the largest US pension fund, has posted a 12.3% return on investments for the one-year period ended June 30, 2006. The fund’s alternative investment management programme, which specialises in private equity and venture capital holdings, earned 19.2% compared with a benchmark of 18.6%, while absolute return strategies garnered an 11.6% return, exceeding the hedge fund benchmark of 8%. These figures are for the twelve months ended March 31, 2006.

CalPERS’ real estate portfolio however was the biggest percentage gainer among asset classes, returning 38.4% for its investments in office, retail, apartment and industrial assets, and 36.5% for housing, land and California urban real estate investments.