“This is a great one-year achievement that powerfully affirms our strategy and the skills of our investment team,” said Chief Investment Officer Joseph Dear, as reported by CalPERS. “While we can’t assume that we’ll sustain this high level of earnings, we have averaged a net return on investments of 8.4 percent for 20 years.”
“These strong returns are a testament to our commitment to our long-term investing principles,” said Anne Stausboll, CalPERS Chief Executive Officer. “Our members, employers and California taxpayers all benefit from our disciplined approach to investing.” On June 30, 2011, the fund’s balance stood at $237.5 billion.
Since then, the fund declined to $226 billion on August 5. Then it crashed again to about $220 billion on yesterday, August 6, based on preliminary estimates. Combined, that’s a loss of about $17.5 billion in just five weeks, or 7.4 percent.
So practically half the gain from last year was wiped away. And there’s no gain for the new fiscal year. Yet the fund has to make at least 7.75 percent a year, on average, to keep its funding levels high enough to avoid further forced taxpayer contributions.CalWatch
This was deliberate theft by Brown. He knew that taxpayers could not stand a second downturn, yet he made no effort to undue the scourge of the Public Union Dills Act. The Marin County Mafia needs to be booted from office.
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